The consulate is the first such facility in the Southern region after the one in Mumbai.
"In my time here in Chennai, I had the opportunity to formally open our Consulate, but by formally opening the office (consulate) as as a Minister, I wanted to underscore how important we see this part of India," she said at a function.
"Southern India is a dynamic region, Tamil Nadu is a growing state and in my meeting today with business leaders and Chief Minister (Panneerselvam), I was able to highlight and was also reflected back to me, the huge potential for our engagement between Southern India and Australia," she said.
Bishop later held talks with Sri Lankan Tamils which she termed as "constructive".
"Constructive discussion with senior Sri Lankan Tamils in Chennai", she tweeted.
The Minister also visited a children's home funded by a Australian company. "Helping Indian Children with Australian funded eyesight program #Chennai", she tweeted.
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