Australia declared their second innings at tea on day four Sunday, setting India 407 to win the third Test at Sydney.
The hosts went to the break on 312 for six, with Cameron Green out for 84 off the last ball before the break, during which captain Tim Paine called a halt.
Steve Smith scored 81 and Marnus Labuschagne 73 with Ravi Ashwin and Mohammed Saini both taking two wickets each.
India have a mountain to climb, with the highest successful run chase at the Sydney Cricket Ground being 288, by Australia against South Africa in 2006.
India were dismissed for 244 in their first innings in reply to the hosts’ 338.