India were bowled out for 153 to fall to a 50-run defeat against Australia in the seventh match of the CB Series.
Mitchell Johnson claimed 3-42 to ruin India's hopes of chasing a modest victory target of 204 in a low scoring contest at the Adelaide Oval.
Australia had posted 203-9 after opting to bat first, Michael Clarke's 79 the top score.
Clarke's 108-ball knock - featuring just six fours - allowed the hosts to recover from a spot of bother at 73-5.
Ishant Sharma bowled Adam Gilchrist for 15, Ricky Ponting's poor recent form continued when he drove to point off the bowling of Munaf Patel for 10 and, when Irfan Pathan had Matthew Hayden (13) caught behind, Australia had slumped to 43-3 in the 12th over.
That became 73-5 after Sharma (2-32) followed up with the wicket of Andrew Symonds (3), who steered a short ball to gully, and Michael Hussey (5) became Pathan's second caught behind victim.
But Clarke stood firm, sharing stands worth 39 with James Hopes (19) and 72 with Brad Hogg (32) for the sixth and seventh wickets respectively.
Pathan returned to remove Clarke and Nathan Bracken (0) in the 47th over and finish with figures of 4-41.
Bracken trapped Sachin Tendulkar (5) lbw with an inswinger in the fifth over of India's chase to set the tone for a superb effort in the field from Australia, who had opted to rest pace spearhead Brett Lee from the match.
The promotion of pinch hitter Pathan (14) to number three failed when he was caught in the gully after poking at Hopes' medium pace, while Gautam Gambhir threatened briefly during an innings of 34 from 42 balls before becoming Johnson's first scalp, caught by Ponting at backward point.
Rohit Sharma (1) edged behind off Hopes (2-16) in the next over to leave India struggling on 59-4.
A fifth-wicket stand of 56 between Yuvraj Singh and Mahendra Singh Dhoni briefly raised the tourists' hopes.
But left-arm wrist spinner Brad Hogg accounted for Yuvraj (26), caught on the boundary, and Dhoni (37) - batting with a runner due to cramp - was run out to leave India on 134-6 in the 35th over.
And the final four wickets went down for just another 19 runs, Johnson turning the screw by having Harbhajan Singh (4) and Robin Uthappa (18) caught behind in successive overs.
Shantha Sreesanth (1) was stumped off Hogg's (2-30) bowling and the victory was sealed when Bracken (2-21) had last man Munaf (0) caught behind, Gilchrist's fifth victim of the innings.
The result earns Australia five points to put them top of the table on 17, India remain second on eight points, while Sri Lanka are bottom with six, having played one less match than their two rivals.
The CB Series continues in Adelaide on Tuesday when India take on Sri Lanka, live on Sky Sports 1 from 0300h (GMT).