England came into the fourth day on a hiding to nothing, sitting on 130-6, still a long way short of their 457-run target.
The wickets continued to tumble as wicketkeeper Amy Jones could only add two runs to her overnight score of 52 before perishing to the spin of Sneh Rana.
Sophie Ecclestone (50) put up some resistance with a maiden international half-century but Rana had the last laugh as she finished with figures of 4-42 as England were bowled out for just 186 in the first session on the final day.
India's victory was set up when they scored 285 in the first innings before taking control of the contest by dismissing the home team for just 170 in reply, with visiting seamer Kranti Gaud taking 5-37 to become the first female cricketer to be written on the famed honours board at the Home of Cricket.
The tourists then piled on 341-7 before declaring the second time around with the bat as Yastika Bhatia joined Gaud on the honours board with a masterful 113 while opener Smriti Mandhana struck 70.
Australia returned to the top of women's T20 cricket, defeating hosts England by chasing down 151 with 17 balls to spare to claim a record-extending seventh Women's T20 World Cup title at Lord's.
Australia completed the highest successful chase in Women's T20 World Cup history to beat India by six wickets at Lord's on Sunday, knocking their rivals out of the tournament and setting up a semi-final against West Indies.
England Women kept their winning streak alive when they defeated New Zealand by nine wickets in their T20 World Cup clash at The Oval on Saturday night.
England booked their place in the T20 World Cup semi-finals with a match to spare after securing a convincing 38-run victory over West Indies at Lord's.
