South Zone posted the fourth-highest total to win a first-class match in history, amassing 503 for four to stun the tourists on the fourth and final day of the Duleep Trophy match in the Northern town of Gurgaon.
Middle-order batsman Venugopala Rao, member of India's Under-19 World Cup-winning team in Sri Lanka four years ago, led the carnage with an unbeaten 228.
He was supported by India international Sridharan Sriram (117) and Subramaniam Badrinath (100 not out).
The English cricketers were on top for the first three days which enabled them to set a big fourth-innings target.
Fast bowler Simon Jones, who was included in England's Test squad for the upcoming tour of the West Indies, failed to get a wicket off 13.5 overs in the second innings, conceding 89 runs.
The biggest fourth-innings total to win a match was achieved in Sri Lanka earlier this year when Central Province piled up 513 for nine against Southern Province in a domestic tournament.
England 'A' (377 and 297-8 decl) lost to South Zone (174 and 503-4) by six wickets.
Sriram, Rao keep South's hopes alive