Later, South Africa beat Pakistan by 12 runs to emerge winners and collect $100,000.
Pakistan and India pocketed $50,000 and $36,000 respectively.
The Pakistani batsmen, especially captain Imran Nazir (28), Yasir Arafat (31) and Hassan Reza (32), sent the Indian bowlers on a leather hunt, preferring the aerial route on several occasions to score 131.
Chasing 132 to make it to the final, India began badly losing last year's man of the tournament Reetinder Singh Sodhi (8). That put the brakes on Indian scoring and though Sanjay Bangar scored a fine 30, the Indians could not match the blistering pace of Pakistani bowlers and fell short by 48 runs.
''It was quite an onslaught. I have never really seen anything like that before,'' said a dejected Indian captain Robin Singh later about the Pakistani batsmen's hammering of Indian attack.
India later beat the West Indies by two wickets to finish third.
Hong Kong, England, Australia, New Zealand and Sri Lanka were placed behind the West Indies in that order.