India needed a four of the final ball to claim a consolation victory but could only manage a single off the last ball of the innings delivered by Leigh Kasperek.
New Zealand made 161 for seven in their 20 overs with Sophie Devine making an impressive 72 from 67 balls. Devine then took 2-21 to claim player of the match honours as India could only manage 159 for four.
Smriti Mandhana stood tall in India's chase as the opener made 86 from just 64 balls in a knock that included 12 boundaries, as well as a six.
India needed 16 runs to win off the final over and looked a chance to do it when Mithali Raj and Deepti Sharma both struck fours in the first three balls. However Kasperek bounced back to concede just four of the final three deliveries and complete the win.
"She held her nerve again. She showed with the bat the other day and then today with the ball," Devine said after the victory.
