The video has gone viral now and it's bound to have.
Watch Rani Mukerji hoisting the Indian flag in Melbourne below:
Rani looked beautiful in a chiffon printed saree with a shawl on top of it. She also clicked some selfies herself.
The IFFM will screen over 60 films in 22 languages over the next two weeks.
Speaking on the occasion, Australian Minister of Creative Industry, Martin Foley had said on Friday, "This year's festival is expected to attract more than 35,000 people to events across Melbourne, bringing together diverse communities through a shared love of film."
"Alongside the film program, there are plenty of ways to get involved from masterclasses to the perennially popular Bollywood Dance Competition," he added.
Foley said festivals like IFFM were making several contributions to the state of Victoria -socially, culturally and economically.
Rani, who is the chief guest of the festival, thanked the Government of Victoria for supporting the Indian film industry. "On behalf of the Indian film fraternity, I would like to thank the Victorian government for supporting the Indian industry as it is so diverse with so many languages and styles" -she said on Friday. She is representing her movie Hichki during the festival.
"It's a matter of great pride for our country to showcase our films here and reach out to people."
Hirani, who is here with writer Abhijat Joshi to showcase his latest movie "Sanju" to the Australian audience, said he would love to shoot in Australia.
(with inputs added to PTI copy)