Australia have drawn the first blood as they comprehensively beat India by 72 runs.
After amassing 304, the visitors dismissed India for 232.
Indian innings didn't get the start that they would have hoped for.
But Rohit Sharma and Virat Kohli did try to keep India in the hunt but the asking rate kept on increasing with every over.
In the end as MS Dhoni fell to Clint McKay, it was curtains to India's chase.
For Australia, Clint McKay was the pick of the bowlers with figures of 3-47.
Shane Watson and McKay picked up two wickets apiece, while Mitchell Johnson, Adam Voges and Aaron Finch picked up one wicket.
India continue to struggle against Aussie pacers as Ravindra Jadeja succumbs to a short delivery from James Faulkner.
Faulkner though a bit expensive but has been the pick of the bowlers as he hurried Jadeja with a short one and was taken brilliantly by Bailey at mid on.
Clin McKay then struck a crucial blow as he went through the defences of MS Dhoni, knocking over the stumps to put Australia on the front foot.
Dhoni was back in the hut for 19.
At the end of 41 overs India were 196-7. India still need 109 runs from 54 balls.
Shane Watson provides an important breakthrough for Australia as he removes well-set Virat Kohli for 61.
Kohli who was struggling to get the big hits going played one across the line and was trapped leg-before-wicket.
After 35 overs India were 167-5. India still need 138 runs from 15 overs.
Dhoni is on 6, while Ravindra Jadeja is on one.
Mitchell Johnson follows James Faulkner over with another wicket taking over as he removes Yuvraj Singh.
Yuvraj, who had been poking Johnson's deliveries, edged one to keeper Phil Hughes for six.
Meanwhile Kohli completed yet another half-century with single off Doherty.
The 64-ball knock included 5 hits to the fence.
At the end of 30 overs India were 150-4.
Suresh Raina and Virat Kohli have picked up the pace after steadying the ship.
None of the Aussie bowlers have managed to penetrate the defences of the batsmen.
But just as we speak James Faulkner strikes for Australia removing Raina for 39.
Raina was caught at third man by Xavier Doherty. Raina-Kohli duo added 71 runs for third wicket.
Yuvraj came and announced his intentions pretty clear with a six off the second ball he faced.
At the end of 28 overs India were 144-3.
Adam Voges now introduced into the attack as Raina helps himself with a single.
Kohli latches on to a short delivery from Voges and covers it through extra cover boundary.
Kohli he then repeats the stroke for consecutive boundary --
100 up for India.
A dot to end the over as India were 101 after 22 overs. Raina is on 20, while Kohli is on 29.
Shane Watson strikes for Australia as he now removes Rohit Sharma for 42.
Rohit was looking good tried to be smart with a chip over third man, but couldn't evade Phil Hughes, who took a good catch.
At the end of 14 overs, India were 66-2.
Spin introduced now as Xavier Doherty come in as Rohit Sharma steers one through third man for a brace.
dabs one for a single. Virat Kohli latches on to a short one and smacks it for a boundary behind point --
50 up for India.
Rohit then late cuts it for another boundary to plunder 12 runs from the over.
At the end of 11 overs India were 55-1. Kohli is on 8, while Rohit is on 38.
James Faulkner strikes early in his first over as he removes Shikhar Dhawan for 7.
Dhawan got a thin edge to Brad Haddin much to the delight of bowler.
India 29-1 after 8 overs. Rohit Sharma is on 18 and joined in the middle by Virat Kohli who is on 2.
India are off to a steady start in the chase of 305. Shikhar Dhawan and Rohit Sharma are dealing in singles for the moment.
Rohit hit the first boundary off the Indian innings as he square drove a slower one.
At the end of five overs India were 15-0.
16:37 - Scorecard
Ishant Sharma to bowl the final over a James Faulkner slaps one through covers for a brace.
Faulkner tried to repeat the stroke, but this time Vinay Kumar snapped it out of thin air to dismiss the Australian.
Clint McKay then picked up a short ball and dispatched it for a boundary towards midwicket.
McKay then latches on to a slower one from Ishant and dispatched it into the crowd.
A single to end the over as Australia finish with 304-8 after 50 overs.
Bailey was the top scorer for the visitors with 87 followed by Aaron Finch who made 72.
For India Yuvraj was the pick of the bowlers with figures of 2-34.
16:21 - Scorecard
R Ashwin in his final over strikes for India as he removes well set George Bailey for 85.
Bailey looking to clear the midwicket boundary was holed out to Suresh Raina.
Bailey's innings included 10 hits to fence.
At the end of 47, Australia were 266-7.
15:51 - Scorecard
Vinay Kumar ends Glen Maxwell cameo after he hit one straight to Rohit Sharma in covers.
Maxwell who had smoked couple of sixes off Vinay Kumar tried to hit another boundary but couldn't clear the fielder and was out for 31.
At the end of 38 overs Australia were 214-5. Bailey is on 31 and he is joined in the middle by Brad Haddin
15:45 - Scorecard
Into the Batting Powerplays now as Vinay Kunar reintroduced.
First up is pitched up delivery as Bailey straight bats it for a single. Bailey is closing in on a half-century.
Glen Maxwell clips one off his pads for a single to ensure that strike is being rotated.
Bailey soon completes his half-century with a couple towards square leg.
Three runs from the over as Australia were 200-4 after 37 overs.
Bailey is on 51, while Maxwell is on 18.
15:29 - Scorecard
Australia seems to have lost their way after a century stand as they lose Adam Voges now for seven.
Yuvraj Singh involved once again as Bailey drops and shoots off. A slight hesitation sees Voges short of his ground with Yuvraj knocking the stumps down directly.
At the end of 33 overs, Australia were 174-4.
15:13 - Scorecard
Yuvraj SIngh strikes once again for India -- this time a well-set Aaron Finch, who was holed out at long off.
Another teasing delivery from Yuvraj had Finch going for an expansive stroke, only to hit it straight down Kohli's throat. Finch made 72.
Man with the golden arm now has two wickets to his name so far as Australia were 150-3 after 28 overs.
George Bailey is on 25, while Adam Voges is on 1.
14:50 - Scorecard
After Jadeja struck in the previous over, it was turn of Yuvraj Singh who struck with his first ball.
Shane Watson, who had just come in, slogged one straight down long-on's throat.
Yuvraj's first ODI wicket since World Cup 2011.
At the end of 20 overs Australia were 114-2.
14:46 - Scorecard
Ravindra Jadeja strikes for India as he removes Phil Hughes for 47. India desperately needed the partnership.
Hughes looking to turn one on the leg side was caught at short fine-leg by Suresh Raina.
Good over for India as five runs come from it and a wicket.
At the end of 19 overs, Australia were 113-1.
14:40 - Scorecard
A century stand between Aaron Finch and Phil Hughes have put Australia on top.
A boundary through backward point brought up Finch's half-century as well.
Finch exploded after a slow start, after initial exploits of Phil Hughes.
Finch planted his left foot and smoked Kohli for a maximum over cover.
At the time of drinks Australia were 108-0 after 18 overs. Finch is on 60, while Hughes is on 45.
14:25 - Scorecard
R Ashwin continues as Finch smokes him for a maximum.
A quicker one from Ashwin as Finch hits it back to the bowler.
Finch then rocks back and slaps it past point for another boundary.
At the end of 13 overs Australia were 73-0. Finch is on 37, while Hughes is on 33.
14:07 - Scorecard
Aaron Finch and Phil Hughes have started to open up after a sluggish start.
Hughes has been the aggressor in the innings so far. Finch who struck a brilliant 89 in the Twenty20 game in Rajkot on couple of days ago looked sedate.
Indian bowlers did manage to keep things tight till 6 overs, giving just 15 runs.
But Bhuvneshwar Kumar's fourth over gave the much-needed momentum for Australia.
Australia managed to get 15 runs off the over, followed by Vinay Kumar's over, which saw him give 8 runs.
At the end of 9 overs, Australia were 43-0. Finch is on 17, while Hughes is on 23.
13:52 - Scorecard
Australia are off to a steady start after winning the toss and electing to bat first.
Openers Aaron Finch and Phil Hughes have worked Indian bowlers but they haven't really been able to get off to a flier.
At the end of 5 overs Australia were 14-0.
Welcome to the live update of the first ODI between India and Australia being played in Pune.
The news from the middle is that Australia have won the toss and have elected to bat first.