Indian bowlers' woes with the ball continued as they lost the match despite batters putting on a huge total of 208/6 in 20 overs at the PCA Stadium in Mohali on Tuesday.
Australia batted aggressively and chased down the target in just 19.2 overs to register a four-wicket win.
The dew factor played a crucial role in India's defeat as they conceded more than fifty runs in the last four overs.
"It was a good contest. Obviously, the dew helped us at the back end. Some really good partnerships from us," said Australian captain Aaron Finch in the post-match presentation ceremony.
Chasing a mammoth 209 Australian team got off to a flying start as their openers skipper Aaron Finch and Cameron Green. Finch hit a six off the first ball of the Australian innings off Bhuvneshwar Kumar's bowling. Green welcomed Umesh Yadav with four consecutive boundaries of his first four balls.
Green top scored for Australia scoring 61 off 30 balls hitting eight fours and four sixes. Matthew Wade too scored an unbeaten 45 off 21 balls to take the World Champions across the finish line.
"I thought the intent of all our guys, the way that they just attacked their match ups and really took it on and tried to change the momentum of the game was really good. That's all we're after at the moment," said Finch.
With this four-wicket win, Australia now have a 1-0 lead in the three-match ODI series.