Electing to bat, Nepal could muster only 156 in 37.5 overs for the loss of nine wickets as India dished out a fine bowling and fielding effort.
For India, Prakash Jayaramiah took two wickets conceding 22 runs while Skipper Ajay Reddy, Rambir, Prem Kumar and Jafar Iqbal picked up a wicket each.
India then chased down the target with consummate ease by losing just two wickets.
India will now play Bangladesh in the semi-finals on January 17 at the Ajman Ovals.
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