India, chasing 292 historically a difficult work for the victory was never in the hunt after crushing six to 81 with the loss of the end of the wicket Sachin Tendulkar in the middle session.
Tourists who have yet to win a series in Australia in 64 years, were routed for 169 off 47.5 overs after Australia urged another 61 points from their two wickets earlier in the day.
Man-of-the-match James Pattinson has led the way with four of 53, while Peter Siddle claimed the prized scalp of Tendulkar for 32 to keep new 100th international century Indian Star on hold.
India were always up against it as they face the highest in the fourth inning run to run in almost 60 years at the Melbourne Cricket Ground.
South Africa were the last team to achieve top quarterback target of 297 in four rounds by beating Australia at the MCG in 1953.
He was a Test match bowlers' drummer without scoring a century. Australian Mike Hussey was best with 89 seconds in the heats.
Robert Pattinson Australia pace trio, Ben Hilfenhaus and Siddle maintained a full line and length and never leave the Indian batsmen.
India 24 for one at noon, after losing Virender Sehwag for seven, defeated in the middle of the session with five wickets tumbling for 93 runs.
Gautam Gambhir fell to a Siddle fired up, ahead of the safe hands of Ricky Ponting at second slip for 13.
Rahul Dravid was bowled for the second time in the match with a pearler of Robert Pattinson that crashed in the middle-stump for 10.
V.V.S. Laxman was out in Pattinson expensive new flick Ed Cowan square foot for a single after scoring two runs in the first.
Virat Kohli was out first ball, leg before wicket with Hilfenhaus to Tendulkar soon ran out of batting partners.
But Tendulkar was next to go, slicing Siddle to Hussey in the gully for 32. With his departure chances India plunged dramatically, silencing the "Swarmy Army" of supporters urging India and many to leave the ground.
Tendulkar now takes his quest for his 100th test and one-day century in second test next week in Sydney.
Ravi Ashwin went soon after tea farming Siddle delivery which he lobbed at Cowan for 30.
Zaheer Khan blasted a six off Pattinson but when fit to do the same on the next ball, he jumped a soft grip for close to 13 Cowan.
Robert Pattinson shocked the skipper MS Dhoni for 23 and Umesh Yadav was the last wicket to fall, caught at the border athletically off spinner Nathan Lyon for 21 with six Ishanti Sharma not out.
India began the day Australia added 61 points for bad their last two wickets off 16.3 overs to exasperate bowlers tourists.
Hussey has had a charmed life before 11 short of a century, and Robert Pattinson remained unbeaten on 37 as it is not put 43 runs for the last wicket before Hilfenhaus was the last man for 14. (AFP)
