Australia were bowled all out by India on the first day of their second Test at Arun Jaitley Stadium, but half-centuries from Usman Khawaja and Peter Handscomb ensured the contest remains in the balance.

The tourists, who trail the four-Test series 1-0 after an innings defeat in Nagpur, managed to reach 263 in Delhi after opener Khawaja made 81 and Handscomb 72 not out.

India skipper Rohit Sharma (13) and KL Rahul (4) guided India to 21-0 at the close of play on Friday to leave them trailing by 242 in the first innings.

Khawaja put on a 50-wicket stand with David Warner (15) for the opening wicket, but Ravichandran Ashwin – who finished with figures of 3-57 – dismissed Marnus Labuschagne (18) and Steve Smith (0) in the space of three balls.

Warner was struck on the helmet and elbow in separate incidents prior to being dismissed cheaply and was later unable to field.

The returning Travis Head could only add 12 runs before Handscomb joined Khawaja to share 59 for the fifth wicket, but the latter was caught by Rahul in the covers, shortly before Alex Carey went for a duck.

Australia were 168-6 at that point, though Handscomb put on another 59 with skipper Pat Cummins, who was sent packing lbw for 33 by Ravindra Jadeja, who also removed Todd Murphy (0) in the same over.

Mohammed Shami returned to remove Nathan Lyon and debutant Matthew Kuhnemann, seeing him finish with figures of 4-60, as Australia were sent packing inside 79 overs.

India managed nine overs in response, with Cummins, Kuhnemann and Lyon unable to remove Rohit and Rahul, who will resume play on Saturday.

Ravindra reaches milestone figure

Jadeja took three wickets in 21 overs to become only the fourth Indian, after Anil Kumble, Kapil Dev and Ravichandran Ashwin, to record 2,500 Test runs and 250 wickets in the format.

It leaves India in a good position to push on and record a third straight Test victory over Australia for the first time since 2013, when winning four in a row against their Border–Gavaskar Trophy rivals.

Khawaja keeps things interesting

After his double failure in the first Test, Khawaja was bold at the start of play in Delhi and his 81 runs came off 125 balls, though he looked devastated when Rahul's leaping one-handed snare denied him a century.

It could have been better for Khawaja and Australia, but it may yet be enough in the grand scheme of things.

"We actually don't know what a good score is on this wicket," the left-handed batter told BT Sport. "If we bowl well, then 260 will be a competitive score.

"There is something in the pitch and plates were moving already when we were batting. Tomorrow will tell the tale of where this game is going."

Australia announced an 18-player squad for their upcoming tour of India, with Mitchell Starc to miss the first Test of the series due to a finger injury.

Starc suffered tendon damage and a fracture to the middle finger on his bowling hand during the Boxing Day Test against South Africa at the MCG, although he was able to tough it out and return to the field.

The 32-year-old was ruled out of the final Test of the series in Sydney and selectors confirmed on Wednesday that Starc's recovery will mean he will not fly over to India with the rest of Australia's squad.

In more positive news, Cameron Green is expected to make a full recovery in time for the series opener on February 9, having undergone surgery on a finger injury of his own.

"Greeny, we're hopeful that he should be right for the first Test," chair of selectors George Bailey said.

"But if not that, that's okay. We feel like we've got the squad that can cover that. 

"Starcy's not expected to be available for the first Test, in fact he's going to come across to India a touch later."

If there is one area of the squad where Australia could afford an injury, it is in the fast-bowling department.

With Starc out, captain Pat Cummins will likely be joined by Josh Hazlewood and Scott Boland in the pace attack, while the rapid Lance Morris has been named in the squad and might feel overdue for a look-in.

Australia also named four spinners, with veteran campaigner Nathan Lyon joined by Ashton Agar, Mitchell Swepson and uncapped off-spinner Todd Murphy.

Bailey addressed the condition of back-up wicketkeeper Peter Handscomb, who was forced to retire hurt immediately after hitting a six while playing for St Kilda in a T20 on Tuesday, having been nailed in the hip the previous over.

"Pete's got a scan tomorrow morning to check on that," Bailey said. "He's confident it's nothing too serious.

"A bit of a mishap. He just copped a ball on the back hip, and then three balls later he dispatched one and just felt something give a little bit in there.

"There's still quite a bit of time between now and when we depart and even when the first test is, so we'll work through that as we get more information."

Bailey confirmed Handscomb is still third in the pecking order, but selectors have opted to give Josh Inglis the tour off to allow him to play some first-class cricket.

"Josh is absolutely still our backup or number two wicketkeeper," he said. "But we're also conscious that he has been on a number of tours and hasn't actually been able to play a great deal of cricket."

The first Test of of the four-match series starts in Nagpur on February 9.

West Indies bowlers toiled early but struck back late to restrict Australia’s Prime Minister’s XI to 297-9 from 89.3 overs at the end of the first day of their four-day match at Canberra on Wednesday.

Having won the toss and elected to bat, the Prime Minister’s XI got a solid start as openers Matt Renshaw and Marcus Harris shared in an opening stand of 134 inside 42 overs.

Jayden Seales broke the partnership when he had Harris caught by Kyle Mayers for 73.

Renshaw made 81 for the Prime Minister’s XI, who also benefitted from 55 from the bat of Peter Handscomb as the home side looked set for a score above 400 at 250-4.

However, Roston Chase led the West Indies fightback when he dismissed Aaron Hardie for 23 and then removed Handscomb as the Prime Minister’s XI slipped to 253-6.

Alzarri Joseph then bowled Ashton Agar for 33, Michael Neser for 10 and Joel Paris for two with the last ball of the day to finish with figures of 3-52 from 17.3 overs.

Chase’s two wickets in 21 overs cost 72 runs while Kemar Roach, Mayers and Raymon Reifer had one wicket each.

Sean Abbott will fly home from Australia's tour of Sri Lanka without playing a game after suffering a fractured finger.

The paceman, who was only in the T20I squad, was struck on the left index finger by a net bowler this week.

Cricket Australia confirmed ahead of the opener in the three-match T20I series in Colombo on Tuesday that Abbott will not be replaced in the squad.

Abbott was due to link up with Australia's A squad in Sri Lanka after the T20I series. Scott Boland has been called up to cover for Abbott in the A team's four-day matches ahead of the two-match Test series

Meanwhile, Peter Handscomb will leave the A squad to return to Melbourne and be with his pregnant wife.

Jimmy Peirson has been added to the squad as a replacement for Handscomb.

Alex Carey is set to captain the Australia A team in their first 50-over match in Colombo on Wednesday after being added to the squad along with Cameron Green, who will also play.