Australian pacers, led by Watson (3/34) and Pat Cummins (2/16) knocked the stuffing out of the Indian batsmen by restricting them to 140 for seven after being asked to bowl.
The highly successful openers -- Watson (72) and David Warner (63 not out) then sent the bowlers on a leatherhunt as they finished the match with 5.1 overs to spare.
All-rounder Watson again did everything right as he first grabbed three wickets and then decimated the Indian attack as he hit as many seven huge sixes in his superb knock off 41 balls, fetching him his third man-of-the match award in a row.
With the able support from Warner who also took Indian bowlers to the cleaners with an unbeaten knock, the two openers literally bulldozed the Indian spin trio.
On a pitch that was supposed to assist spinners, Ravichandran Ashwin, Harbhajan Singh and Piyush Chawla were punished mercilessly by the Aussie openers who added 133 for the first wicket.
Watson who completed his 50 off 28 balls first hit Ashwin for a couple of sixes and then one by one launched into Harbhajan, Chawla and Irfan Pathan.
After the batsmen flopped, the Indian bowlers needed to bowl in good areas but did exactly opposite as they gifted one half tracker after another.
While Zaheer Khan could feel unlucky not getting a close leg-before shout against Watson, no one can take anything away from the performance of one of world`s premier all-rounders.
The demoralizing manner of defeat will also affect the net run-rate of the Indian team in case the qualifications for semi-final become close.