That is the view of coach Mickey Arthur, who conceded the conditions in Chennai were very challenging for his side but saw enough to give him confidence for the rest of the four-match series.
Arthur wrote on www.cricket.com.au: "Things didn't go quite according to plan in the first Test, but there are still plenty of positives to take out of the game. We certainly know we're good enough to beat India on their home soil."
He continued: "There has been a lot of discussion about the conditions we faced in Chennai. It's true that they were very foreign to what we see in Australia but that is the great challenge of Test cricket.
"We knew we were going to come up against conditions that were unfamiliar but the sign of a good team is one that can adapt to different conditions and play well.
"That is the ultimate challenge of Test cricket and something we need to conquer if we want to be number one in the world again. We already can't wait to get into the second Test and to level this series."
A blow for the Australians, though, is the news fast bowler Jackson Bird has a stress fracture in his back and has been ruled out of the rest of the series. The 26-year-old Tasmanian was sent home earlier this week and the injury could affect his preparation for this summer's Ashes series.
India captain Mahendra Singh Dhoni was the star of the show in Chennai with his double century in the first innings, and the result was a welcome tonic for India after their home series loss to England.
The hosts won the first Test in that series, too, and their recent record in longer series will ensure there is no complacency among Duncan Fletcher's men.
Since beating England in 1981-82, India have managed only two wins in series of more than three Tests and lost 15 times, although one of their victories did come when Australia were the visitors in 2008-09.