India still need 189 runs in the final session of play with eight wickets in hand.
Murali Vijay was batting on 71, while skipper Virat Kohli was unbeaten on 26.
Brief Scores:
Australia: 572 for seven decl & 251 for 6 decl in 40 overs (Steve Smith 71, Joe Burns 66; R Ashwin 4/105).
India: 475 & 160 for two in 57 overs (Murali Vijay 71 not out, Virat Kohli 26 not out; Shane Watson 1/15).