Days after 21-year-old Nitin Garg was stabbed to death here, the Australian police on Tuesday said a partially-charred body of another Indian youth was found in New South Wales, even as Canberra asked New Delhi not to whip up “hysteria” over such incidents.

The body of the 25-year-old victim was found on a roadside near Griffith on December 29. The police are in touch with his family in India to help in identification.

The incident came amid diplomatic efforts by both countries to ease strains in ties over frequent attacks on Indians.

Media reports said the youth could be a victim of a labour dispute. For, there had been a rise in Indian students working as contract labourers in western NSW and there were complaints that they were being exploited.

As for the attack on Nitin Garg, a student who was fatally stabbed in the abdomen on Sunday while on way to his part-time job in a restaurant, acting Foreign Minister Simon Crean said there was no evidence to suggest that it was racially motivated.

“It so happens that one of the victims is Indian ... Melbourne is not the only city in the world where this happens. It also happens in Delhi and in Mumbai,” Mr. Crean was quoted as saying by The Age. The report said he asked Indian leaders not to fuel hysteria over the issue, while conceding that there could be economic repercussions.

Harry Goring of the Australian Workers Union said he had heard of unpaid labourers taking matters into their own hands. “Over the last 12 months there have been two assaults around that area, people endeavouring to retrieve money for labour.”

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