India A had a disastrous start, losing four wickets with only 11 runs on the scoreboard.
This is the first time the two teams are facing each other since India defeated South Africa in the T20 World Cup final in June.
Pacer Mohammed Shami's return to cricket has been delayed due to his recovery from ankle surgery, excluding him from India's squad for the Border-Gavaskar Trophy.
With stellar performances in the last 15 years Virat Kohli has cemented his position as one of the greats of the game.
The Indian squad, including Kerala player Sanju Samson, landed in Durban, South Africa on Monday. The BCCI released a video of Indian opener Abhishek Sharma quizzing his teammates about South African history and geography at the airport.
Pat Cummins picked up two wickets and scored an unbeaten 32 runs as Australia beat Pakistan by two wickets.
KL Rahul and Dhruv Jurel will travel to Australia early to join India A for additional match practice ahead of the Border-Gavaskar Trophy. This decision was made due to their limited opportunities in the series against New Zealand.
Wriddhiman Saha, considered one of India's finest wicketkeepers in recent times, has announced his retirement from professional cricket.
At stumps on Day 2, New Zealand scored 171/9 in the second innings, lead by 143 runs. Ravindra Jadeja took four wickets for India.
Chasing a target of 225, Australia A reached 139 for 3 at stumps on Day 3 at the Great Barrier Reef Arena. Nathan McSweeney (47) and Beau Webster (19) are at the crease.