Australia brought India down with a 3-1 victory and moved comfortably towards Saturday final.
The last time the two nations met was at the 14th FIH Champions Trophy in London last year.
The Kookaburras capped a fine start in preparation towards the August Rio Olympics with a 3-1 win in penalty shootout over the Indians after a scoreless draw in regulation time.
However, the 2016 edition of the Sultan Azlan Shah Cup has been a painful experience for World No 6 India against Australia. They lost 5-1 in the group stage and 4-0 in the final.
Nine-time champions Australia, and India who last won the Cup in 2010, got off to a rousing start today and it was the Kookaburras who set the match alight with a penalty corner in the first minute with nothing coming out of it.
However, in a sudden burst of counter attack by the Australians, India’s No 1 goalkeeper P. Sreejesh came off the line to stop Eddie Ockenden from taking a shot and in the process suffered a right knee injury. He was replaced Akash Chikte.
But it was India who grabbed the lead in the 26th minute through Harmanpreet Singh whose shot was deflected in by defender Andrew Philpott before a lurking Mandeep Singh could even have a go at it.
The World No 2 Australians equalised four minutes later when Jeremy Hayward makes a powerful shot that spills off the pads of Akash and into the way of Ockenden who had no trouble plugging the ball into goal. Tom Craig doubles the score in the 34th minute with a reverse stick shot past Akash.
India made great efforts making inroads for the equaliser towards the end of the fourth quarter but it was Australia who went ahead 3-1 thanks to a brilliant individual rate from Tom Wickham who manoeuvred his way past three amused Indian defenders and blasted the ball with a reverse stick shot past the hapless Akash.
The Indians tried everything to get back into the game with six minutes remaining on the clock but could not break down a fortified Australian defence for their first defeat in the tournament.