Poonam Yadav took 10 wickets throughout the tournament, while Shafali Verma scored 163 runs at a brilliant strike rate of 158.25.
It was dominance at its best from Australia in front of a record 86174 spectators at the Melbourne Cricket Ground on Sunday
India, playing in their first Women's T20 World Cup Final, had no answer to Alyssa Healy (75) and Beth Mooney (78 not out) before folding to 99 all out at the hands of seamer Megan Schutt and spinner Jess Jonassen.
After the match, Shafali wasn't able to control her tears and was seen crying in the dugout and on the field after the match.
Shafali Verma's method has a distinctive Indian flavour, recalling at once Virender Sehwag and Virat Kohli.
India defeated Australia in the tournament opener last month in Sydney and since then has gone undefeated to make it to their maiden T20 World Cup final.
Averaging 40.25 with a blistering strike rate of 161, 16-year-old Shafali has been the heart and soul of India's batting throughout the four group matches and played a crucial role in the team's race to their maiden World T20 finale.
Schutt bore the brunt of Verma and Mandhana's attacking cricket in the very first over during last month's tri-series, dispatched for a four by the teenager on the very first ball and hit for a six by Mandhana.
Harmanpreet Kaur's team became the first Indian side to reach the final of a Women's T20 World Cup and will play either of Australia or South Africa in the summit clash.
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Shafali Verma has scored 161 runs at a stunning strike rate of 161 in the ongoing Women's World T20 in Australia.
The 16-year-old Shafali Verma has taken over from New Zealand's Suzie Bates, who had been the top batter since October 2018.
India definitely have one major section to worry about - their below-par batting performance, a problem area which had even affected them back in 2018, and their over-reliance on 16-year-old Shafali Verma.
India have been unbeaten so far in the Women's World T20 and topped Group A on their way to the semi-finals.
The 16-year-old announced her emergence on the global stage by becoming the second highest run getter in the ongoing tournament. She has so far scored 161 runs, hitting 18 fours and nine sixes in four matches at an astounding strike rate of 161.
On Thursday, the 16-year-old batswoman won her second Player of the Match award in three games at the ongoing tournament. Her 34-ball 46 against New Zealand took India to their third win in three games - and the semi-final.
They have their own talented teenager in their ranks in Shafali Verma, who has taken the world by storm with her fearless opening displays in each of India's three wins.
It was an all-round show from the Indian bowlers as they restricted New Zealand to 129/6 in their chase of 134 to win the game by 4 runs.
Smriti Mandhana, who has been a key player for the Indian team in the last two-three years, said Shafali Verma is showing she is capable of filling her boots.
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