It was 1-1 at full time after China found a late equaliser through Tiantian Luo, who converted a penalty corner in the 47th minute.
India had scored through Navjot Kaur in the 25th minute of the game.
The triumph of the Indian women's team follows the Asia Cup victory of the men's side last month.
South Korea secured third place with a 1-0 win over Japan earlier in the day.
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