 After his retirement in 1953, he served as the Indian high commissioner to Australia and New Zealand until 1956.With a view toward ex-servicemen's welfare, Cariappa founded the Indian Ex-Servicemen's League (IESL) in 1964.He was also instrumental in setting up the Directorate of Resettlement (later Directorate General Resettlement), an inter-service organisation under the Department of Ex-servicemen Welfare, Ministry of Defence, that looked after the various issues surrounding the resettlement of retired soldiers, especially those who retired young.