Indore: India were all out for 163 in their second innings on Thursday, leaving Australia needing 76 to win the third test in Indore.
Cheteshwar Pujara topscored for India with a gritty 59, while Nathan Lyon was the pick of the Australia bowlers, claiming 8-64.
India are 2-0 ahead in the four-test series for the Border-Gavaskar Trophy.