Played under a blinding sun in sweltering heat, Australia's brand of power hockey proved too strong for India as the world champions scored four goals in each half to maintain a run of success dating back to the sport's debut at the event in 1998.
Jason Wilson and Luke Doerner scored two apiece, while Chris Ciriello, Simon Orchard, Jamie Dwyer and Glenn Turner completed the rout with a goal each.
New Zealand beat England on penalties after a 3-3 draw to claim the bronze medal.
Cheered on by a near-capacity crowd, including Prime Minister Manmohan Singh, India made a bright start before Australia took complete control once they had gauged the home side's strengths and weaknesses.
Despite the nature of their final defeat, India can take heart from a rare success on the international stage in a sport that has suffered a steady decline since the last of eight Olympic triumphs in 1980.
Australia coach Ric Charlesworth, who failed to revive India's sagging fortunes when hired as an advisor in 2008 after repeated run-ins with the federation and sports ministry officials, had a word of praise for the beaten hosts.
"India showed in the first 20 minutes they can play well," the Australian told reporters.
"I think their Spanish coach (Jose Brasa) has made a difference. Maybe they wanted favorable conditions but were affected by the heat. They played night games the whole time and found the heat challenging."
Brasa, whose contract expires after next month's Asian Games, said India's players were tired after a hectic schedule but admitted they had been outplayed.
"Australia are the best side in the world... They have an excellent domestic circuit and league, something we should have in India," Brasa said.
