But, chasing 130, they collapsed to 46 for four, before a partnership of 64 between former Ireland left-hander Eoin Morgan (33) and Ravi Bopara (30), who also took three for 20 with his medium-pacers, swung the match back their way.
However, India seamer Ishant Sharma turned the match on its head by removing Morgan and Bopara off successive deliveries and England needed 19 off the last 12 balls for victory.
The target eventually became six off one ball and that proved too much for tailender James Tredwell as he failed to make contact against fellow off-spinner Ravichandran Ashwin.
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Ravindra Jadeja was named man-of-the-match for making 33 not out and taking two for 24 with his left-arm spin.
India's win left England still searching for their first major ODI trophy after defeats in three Wor