Chasing a daunting 185 to win their maiden Title, the Indian team was skittled out for 99 runs in 19.1 overs.
Only Deepti Sharma managed to score a respectable 33 off 35 deliveries but the remaining batters failed to provide any resistance to the strong Aussie attack.
Megan Schutt was the pick of the bowlers taking 4/18 while Jess Jonassen had figures of 3/20 and helped secure their fifth World Twenty20 crown.
Earlier, Defending Champions Australia posted a mammoth 184/4 in their allotted 20 overs against India in the finals in Melbourne.
Australia captain Meg Lanning won the toss and elected to bat first.
Aussie openers Beth Mooney and Alyssa Healy went on to post 115 for the opening wicket to lay the perfect platform.
Mooney remained unbeaten on 78 from 54 balls while Healy scored 75 off just 39 deliveries.
For India Deepthi Sharma picked up 2 for 38.
Alyssa Healy adjudged the player of the final while Beth Mooney was presented with the player of the tournament award.