Australia set India 328 to win the fourth Test in Brisbane.
The hosts resumed on 21 without loss and were bowled out for 294 - Steve Smith top-scoring with 55.
Marcus Harris and David Warner began the day with urgency but wickets fell at regular intervals, with Mohammed Siraj taking five for 73 and Shardul Thakur claiming four for 61.
Australia would have hoped to bat India out of the game but now face the prospect of having to take 10 wickets on the final day to claim the Border-Gavaskar Trophy.
The weather could play a decisive hand, and India's response was cut short by rain as they managed just 11 balls, ending day four on four without loss.
The series stands delicately poised at 1-1, with a draw enough for India to retain the trophy.
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