Chasing a moderate 120 runs for victory, the women in blue failed to cross the line after managing to make 118/6 in the allotted overs.
Indian skipper and opener Smriti Mandhana top-scored for her side with a 39-ball 58, laced with eight boundaries and a six.
India got off a poor start as opener Harleen Deol (1) was packed off by Anya Shrubsole in just the second over of the innings. Mandhana was then joined by Jemimah Rodrigues (11 runs off 22) and the duo stabilised the Indian innings with a 49 run partnership before the former was trapped in front of the wicket by Linsey Smith.
Mandhana and experienced Mithali Raj then came together to add 28-runs for the third wicket. However, the former became a victim of Laura Marsh in the 13th over with the Indian scorecard reading 87/3.
Deepti Sharma and Mithali were then involved in a small partnership before Deepti was run-out. Mithali along with Bharati Fulmali (5) took India closer towards victory. However, India lost Fulmali and Anuja Patil (0) in two successive deliveries as India fell short by just one run.
Earlier, India managed to restrict England to 119/6 in their 20 overs, thanks to off-spinners Anuja and Harleen Deol, who took two wickets each while Ekta Bisht and Poonam Yadav chipped in with a wicket each.
England Women: 119/6 (Tammy Beaumont 29, Amy Ellen Jones 26; Harleen Deol 2/13) beat India Women 118/6 (Smriti Mandhana 58, Mithali Raj 30 not out; Kate Cross 2/18) by 1 run.