MS Dhoni???s side reached 69-2 off 16 overs after being put in to bat before bad weather ??? which had delayed the start of play at the SCG ??? returned to put an end to the contest.
India suffered an early blow when opener Shikhar Dhawan was dismissed for just eight, caught at slip by Aaron Finch off Mitchell Starc???s bowling, extending his poor run with the bat.
Ambati Rayudu (23) was the other batsman to fall, caught superbly by David Warner off Mitchell Marsh running back from cover.
Australia have already qualified for Sunday’s final in Perth with three wins from their first three matches but the remaining spot is still up for grabs.
India and England, on two and five points respectively, will play each other at Perth on Friday with the winners advancing to meet the hosts.