Already out of title race, India played without pressure and at last came up with a complete performance that had Australia on the backfoot for most part of the match.
The win gave also gave India's new chief coach Paul van Ass his best moment of a short career with the Indian team.
India scored a goal each in all the four quarters through VR Raghunath (1st minute), Nikkin (23rd, 32nd, 60th), while Australia's goals came from the sticks of Daniel Beale (14th) and Matt Gohdes (53rd).
The Kookaburras struggled for ball possession throughout the match and their defence crumbled when put under pressure by the Indian forwards.
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Barring the two soft goals which they conceded, there was no blemish in India's performance today.
After four games, the Indians at last showed class and made a promising start to the match against a side which is way above in current world hockey.
India were by far the better side on display in the entire 60 minutes as they dominated the proceedings against all expectations.
The Indians continued in the same vein and had another great chance in the 10th minute which was wasted by Satbir Singh who scooped over with only the approaching Australia goalkeeper Tristan Clemons to beat.