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Electing to bat first, Australia were dismissed for 216 runs in 47.2 overs. Ishan Porel, Shiva Singh and Anukul Roy picked up two wickets each for India.
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Opener Manoj Kalra then spearheaded the Indian run chase with an unbeaten century as the Boys in Blue romped to victory with 67 balls to spare.
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Kalra remained unbeaten on 101 runs off 102 deliveries while Harvik Desai was not out on 47 at the other end. Desai brought up the title win in style, smashing a boundary off Australian pacer Will Sutherland.
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India thus became the first nation to win the ICC U19 World Cup four times. They had earlier won the title in 2000, 2008 and 2012.
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This is the second time that India have defeated Australia in the final. They had earlier defeated the boys from Down Under in the final of the 2012 edition.