The Indian captain MS Dhoni scored 124 off 107 balls, his fifth century, while Gautam Gambhir struck 76 off 80 balls. After Gambhir's exit, Suresh Raina played a perfect foil to Dhoni, smashing 62 off 50 balls.
Chasing a victory target of 355 runs, Australia were bowled out for 255 in 48.3 overs.
Ravindra Jadeja (3-35), Praveen Kumar (2-37) and Ishant Sharma (2-34) were the wicket-takers.
Dhoni added 119 runs with Gambhir and 136 with Raina.
Dhoni's half-century came in 55 balls and included threefours, before he plundered the bowling in the death, bludgeoning six fours and three sixes.
Virender Sehwag laid the foundation with a blistering 40 off 31 balls with the help of six fours and one six. Yuvraj Singh, coming back to international cricket after missing the Champions Trophy, kept the momentum going, scoring 23 off 24 balls.It was a compact performance by the Indian batsmen who fumbled while chasing 293 in the first ODI at Vadodara.