The federal Opposition has accused Foreign Minister Stephen Smith of misleading the Australian people by saying India is not upset at the Government's refusal to sell them uranium.

Mr Smith has just returned from meetings with the Indian Prime Minister and Foreign Minister, where he said the export ban poses no threat to the countries' relationship.

Opposition's Foreign Affairs spokesman Andrew Robb told ABC1's Insiders that is simply untrue.

"This is a scandal that's gone under the radar," he said.

"It's going to cost Australians billions of dollars. Stephen Smith has come back last night or the night before, he's misleading the Australian people.

"India is profoundly upset and annoyed at the fact that we are refusing to sell uranium to them for clean power nuclear generation."

The Federal Government is refusing to sell uranium to India because it has not signed the nuclear non-proliferation treaty.

Mr Robb says grubby Labor politics has jeopardised Australia's relationship with India.

"It's a sort of a touch of the colonial stuff here," he said.

"We're now saying to India, you can buy it from somebody else and you should but we don't trust you with our uranium.

"It's going to affect our relationship, it's going to cost the Australian community billions of dollars and it is only because of grubby internal labor politics."