The Aussies, who had lost five first-choice players to injury, clinched the trophy in Gauhati, India, with a six-wicket win. The final match in the series is tomorrow in Mumbai.
Doug Bollinger and Mitchell Johnson ripped through the Indian top order.
Bollinger had five for 35 and Johnson claimed three for 39 to bundle India out for 170 in 48 overs.
Australia then reached 172 for the loss of four wickets in 41.5 overs to clinch the series.
Australian captain Ricky Ponting described it as "perhaps the most satisfying series win I've been involved in".
He said that merely getting 11 fit players onto the field had been a challenge for some of the games.
Australia benefited from India captain Mahendra Singh Dhoni's decision to bat first. He later admitted that the match had swung in Australia's favour within the first half-hour.
"The conditions helped the bowlers, but they bowled exceptionally well to exploit them," Dhoni said. "For us, it was disappointing to lose three closely contested matches in the series. But the credit goes to Australia for taking the games away from us."
India lost Virender Sehwag for four and Gautam Gambhir for a duck in the first over of the day and never fully recovered.
Scores in brief: India 170 (Ravindra Jadeja 57, Praveen Kumar 54 no, Mahendra Singh Dhoni 24; Doug Bollinger 5/35, Mitchell Johnson 3/39, Watson 2/27). Australia 172/4 (Shane Watson 49, Michael Hussey 35, Ricky Ponting 25, Cameron White 25; Harbhajan Singh 3/23). Australia won by six wickets.
Scores in brief: Warriors 254/5 (Arno Jacobs 83 no, Davey Jacobs 50, Justin Kreusch 32, Riaan Jeggels 30; Graeme Swann 3/26). England 256/2 (Andrew Strauss 117 no). England won by 8 wickets.
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