At the other end, Beau Webster struggled to find rhythm and survived a couple of close LBW calls, even as Australia sought stability following a disastrous start.
Senior batter Steven Smith slammed an unbeaten 139 - his 34th Test century, as Australia continued their total domination in the Boxing Day Test after reaching 454/7 in 113 overs at lunch on day two at the Melbourne Cricket Ground on Friday.
However, Smith's performances during Australia's tour of New Zealand raised questions about his suitability as an opener.
The visitors started well in the first half before the Indian bowlers struck twice. Ravichandran Ashwin got the first wicket while Shami scalped the second.
Steven Smith, who was declared the Man of the Match for his unbeaten 80 off 51 balls.
Australia have made two changes, they have roped in Steven Smith and Mitchell Starc in places of Usman Khawaja and James Pattinson, respectively. For England, Craig Overton has replaced Chris Woakes.
Smith was replaced by Marnus Labuschagne, who became Test cricket's first ever concussion substitute who can bat in Australia's second innings.
For England, Stuart Broad picked up a couple of wickets while debutant Jofra Archer and Chris Woakes picked up a wicket each.
Defending champions Australia were in a turmoil around this time last year after Steve Smith and David Warner were banned for one year in the aftermath of the ball tampering incident in Cape Town.
The defending Champions will look for a perfect start to their World Cup Campaign against Afghanistan, who might not be any match to Australia on paper, but will believe that they can win against any opposition on their day as the win against Pakistan in a Warm Up fixture reaffirms.
