This inquiry tries to grasp the ruling civic discourses of accusation of racism leveled against the Australians as conveyed by racist attack victims and Indian Government officials in the Times of India and Outlook India news magazines. It attempts to grasp how the discourses' logics have molded the racially inspired accusations of the Indian diaspora in Australia, and how the nationalistic feelings are cultivated amid the diasporic Indians and the Indians in India. It is asserted that there is a reciprocal diasporic and homeland nationalism production in the face of a crisis that affects the Indian diaspora in Australia. This study also advances the ideology of multiculturalism in Australia.