Set a target of 156, India were all out for 144 after being 115 for three in the 15th over.
Chasing 174, India got off to a quickfire start as openers Shafali Verma and Smriti Mandhana put on 70 runs in the opening six overs.
Earlier, a spirited bowling performance helped England to restrict India to 123/6 in the allotted twenty overs.
Ellyse Perry was the undisputed star of the game, scalping up four wickets before scoring 49 off 47 balls in Australia's chase.
Harmanpreet Kaur's unbeaten 42 runs helped the side to chase the target of 148 with three balls to spare.