Shikhar Dhawan was 73 not out from 72 balls, and captain Virat Kohli was 3 not out.
India chose to bat first, and Dhawan and Rohit Sharma bided their time before opening up once Australia fast bowlers Mitchell Starc and Pat Cummins were changed.
India's openers Rohit Sharma and Dhawan reached 41-0 after 10 overs, but let loose against the change bowlers and were untroubled in achieving their 16th century partnership, tied for second in one-day internationals history with Adam Gilchrist and Matthew Hayden. Sourav Ganguly and Sachin Tendulkar lead with 21.
The partnership was broken at 127 in the 23rd over when Sharma edged behind a Nathan Coulter-Nile riser.
Sharma, who scored an unbeaten century in India's opening win against South Africa, fell for 57 from 70 balls.
India opener Rohit Sharma became the fourth batsman to score 2,000 runs against Australia in one-day internationals, during their Cricket World Cup match at the Oval.
Sharma needed 20 to the mark, and got there with his second boundary, off Glenn Maxwell in the 13th over.
He joined Sachin Tendulkar (3,077 runs), Desmond Haynes (2,262), and Viv Richards (2,187).
Sharma is also the fastest to 2,000 ODI runs against any side, in 37 innings.
He and Shikhar Dhawan were 41-0 after 10 overs, but opening up to be 81-0 after 16 overs.
India won the toss and chose to bat first against Australia on a used pitch at the Oval.
Captain Virat Kohli said they want to put scoreboard pressure on before the Australians bat second in the afternoon.
India and Australia picked unchanged XIs.
In its only match, India beat South Africa by six wickets on Wednesday in Southampton.
Australia overcame the West Indies by 15 runs on Thursday in Nottingham.
Lineups:
India: Rohit Sharma, Shikhar Dhawan, Virat Kohli, KL Rahul, Kedar Jadhav, MS Dhoni, Hardik Pandya, Bhuvneshwar Kumar, Kuldeep Yadav, Yuzvendra Chahal, Jasprit Bumrah
Australia: Aaron Finch (captain), David Warner, Usman Khawaja, Steve Smith, Marcus Stoinis, Glenn Maxwell, Alex Carey, Pat Cummins, Nathan Coulter-Nile, Mitchell Starc, Adam Zampa
India and Australia meet for the ninth time this year in a Cricket World Cup group match on Sunday on a used pitch at the Oval.
They are split 4-4, but Australia has won the last three matches, its longest winning run against India in three years.
In World Cups, Australia leads this matchup 8-3, winning the last encounter in the 2015 semifinals en route to the title.
Australia is on a 10-match winning streak in one-day internationals, its longest in nine years. The run includes opening wins here against Afghanistan and the West Indies.
India is playing for its second win in two matches after opening its campaign with a win over South Africa last Wednesday.
Mahendra Singh Dhoni is set to play his 340th ODI, tying Rahul Dravid for second on India's all-time list, behind only Sachin Tendulkar's 463.