Tim Paine rued Australia's first-innings batting display after their loss to India in the third Test in Melbourne.

India retained the Border-Gavaskar Trophy by claiming a 137-run win on Sunday, taking a 2-1 lead in the four-Test series.

Australia were left to lament a poor start, bowled out for 151 in response to India's 443-7 at the MCG.

Paine said the inexperience in the batting line-up meant efforts like the one in Melbourne were somewhat expected.

"It's a bit disappointing, no doubt," he told a post-match presentation.

"We thought we made some strides forward in Perth, but with an inexperienced batting line-up, at times you're going to have performances like we did in the first innings.

"We've got to learn from that, be better very quickly before we go to Sydney."

There it is, India secure a 137-run victory to retain the Border-Gavaskar Trophy with a Test to play.

Australia will now look to avoid an historic series defeat in Sydney starting January 3: https://t.co/0glOblMnaq #AUSvIND pic.twitter.com/nvOJstyRZH

— cricket.com.au (@cricketcomau) December 30, 2018

Australia's batting line-up came under fire after the first innings, with Aaron Finch and Mitchell Marsh in particular questioned.

Paine said changes would be considered ahead of the fourth Test, which starts in Sydney on Thursday.

"There's always little discussions around batting orders and teams and it'll be no different this week going into the Sydney Test," he said.

"We expect conditions will be a little bit different there, so we'll have a chat around what we think the best formula is to win the next Test match."

Paine later confirmed Marnus Labuschagne, who played two Tests earlier this year, has been added to the squad for the encounter in Sydney.

BREAKING: Tim Paine confirms Marnus Labuschagne has been added to the Aussie Test squad for Sydney #AUSvIND

— cricket.com.au (@cricketcomau) December 30, 2018