Australia 195 (Labuschagne 48, Bumrah 4-56, Ashwin 3-35) and 133 for 6 (Made 40, Jadeja 2-25) lead India 326 (Rahane 112, Jadeja 57, Lyon 3-72, Starc 3-78) by 2 runs.
Melbourne: India are well within distance of levelling the four-match Test series after reducing Australia to 133 for 6 at stumps on the third day of the second Test Melbourne Cricket Ground on Monday.
Ajinkya Rahane's 112 and Ravindra Jadeja's 57 took India to a decent first innings score of 326 and a handy 131 run lead.
The visitors now look to wrap up the proceedings on the fourth day as Australia have a slender lead of two runs with only four wickets in hand.
For India, Jasprit Bumrah bowled brilliantly to end the day with 1/34 while Ravindra Jadeja got 2/25.
Ravichandran Ashwin and Mohammed Siraj also got a wicket apiece.
The only worry for India is Umesh Yadav's (1/5 in 3.3 overs) calf muscle injury after removing opener Joe Burns with a peach of delivery.
Earlier, after dominating the final session on day two, Ajinkya Rahane and Ravindra Jadeja didn't pose a major threat to Australia as India were folded for 326/10 in their first innings.
If Rahane and Jadeja had put India in the driver's seat on day two, it needed a run out for the hosts to bounce back in the game. Rahane, who got run out for the first time in his Test career, was sent back after a close call.
Jadeja completed his half-century but the run-out had already done the damage as India suffered another collapse. With the intent of scoring quick runs, the visitors started losing wickets at quick intervals and slipped from 294/5 to 326/10.
India lost five wickets for 32 runs in the morning session. The visitors have a significant first-innings lead of 131 runs.
Resuming day three from 277/5, India got off to a decent start but just when things appeared to be going well for the visitor, skipper Ajinkya Rahane got run out while attempting a risky single.
Meanwhile, Ravindra Jadeja hit his 15th half-century as India extended their lead by 100 runs. However, in order to add some quick runs, Jadeja went for the big shot off Mitchell Starc but found Pat Cummins in the deep.
Umesh Yadav and Ashwin then stitched a brief stand of 19 runs before India lost their third wicket of the day. Nathan Lyon dismissed Umesh in the 114th over as visitors started trembling in the first session of day three.