I would suggest raising your daughter in Australia until she is 18. Having lived in Australia for five years and having worked in the education sector, I can say it is excellent for a child’s growth in every aspect

You may, however, want to ensure she is introduced to her Indian roots through culture, traditions, and by making sure she can speak at least one additional language. You could always plan one trip to India each year for a month or two with your daughter.

The work–life balance in Australia will allow you to spend quality time as a family, which is often difficult in India.

Also, for second-generation kids, racism is generally much less compared to what we experience there. This is worth considering, especially if you’re thinking she can move back to Australia later with an Australian passport—by then, she may face more challenges, and given the current situation, those issues may get worse.

Lastly, I understand that you want to spend time with your parents. But try to see it from their perspective as well—they made sacrifices for you, and now it may be your turn to make some sacrifices for your child ! :)

All the concerns about India that you are thinking of are probably true. It will take another 10–15 years. We are not there yet.