Australia extended the lead by 348 runs as they posted 251/6 in their second innings with four wickets remaining at stumps on day four of the fourth and final Test in Sydney.
Resuming their first innings on the fourth day, India were bowled out for 475 runs, thus conceding a 97-run lead, thanks to a late half-century by Ravichandran Ashwin.
India lost skipper Virat Kohli for his individual score of 147 in the morning session after resuming at overnight score of 342 for 5.
Australia, on the other hand, got off to a bad start in their second innings as opener David Warner and swashbuckling batsman Shane Watson fell prey to off-spinner Ashwin's deliveries.
However, skipper Steve Smith and Chris Rodgers steadied the ship with a solid 80 runs third wicket partnership. The players subsequently went on to hit 71 and 56 runs respectively.
The lead was further consolidated by yet another solid 86 runs sixth wicket partnership between Joe Burns and wicketkeeper batsman Brad Haddin.
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For the tourists, Right arm off-break Ashwin was the pick of the bowlers as he claimed wickets of Warner, Watson, Shaun Marsh and Joe Burns for 105 runs.
Haddin will resume batting with Ryan Harris (14) on Saturday at the SCG.