The win has made MS Dhoni the first captain to win all three ICC trophies - ICC World Cup, ICC World Twenty20 and now the Champions Trophy.
The final match was reduced to 20 overs each side after it started raining in Birmingham, home to the Edgbaston cricket ground.
India opened the innings and finished 129 for seven in 20 overs following a strong batting partnership between Shikhar Dhawan (31 runs) and Virat Kohli (43 runs).
England, which elected to field first, chased a modest 130 runs to win. The England team was almost on par until the last three overs with a run rate of 6.2 as against India’s 6.4 per over. But following Ravi Bopara’s dismissal from the crease for 30 runs, England lost wickets in quick succession.
England finished on 124 for 8 after James Tredwell (5 runs) was facing the last ball needing six runs for victory.
India’s Ravindra Jadega who scored 33 runs off 25 balls complete with two smashing sixes and two fours was crowned Man of the Match. Jadeja also took two wickets in his four overs at an economy rate of 6.00 per over.
The Indian team dedicated the win to the victims of severe flood and landslides at the northern state of Uttarakhand.