The visitors were bundled out for a paltry 153 in 37 overs after being put into bat. Only Tanmay Srivastava posted a well-compiled 57 with the next best score being 24 by Ravinder Jadeja.
In reply, the hosts started disastrously, slumping to 58 for four at one stage with Indian medium pacer Yo Mahesh (4/24) doing most of the damage. The hosts almost lost the plot but for a dramatic final over which saw last man Trent Boult (7 not out) snatching victory with a final-ball six.
Timothy Southee proved to be the most destructive bowler for the Black Caps, taking four for 29.
For India, Yo Mahesh snapped up four wickets for the second time in succession to rattle the New Zealand top order, but a gritty half-century stand by Corey Anderson (24) and Bradley Cachopa (34) put the hosts right back into the game.
Tailenders Muir and Boult then held their nerves to help New Zealand wrap up a fine win and level the three-match series.
India had won the first 'ODI' by nine wickets yesterday.
Brief scores: India 153 all out in 37 overs: (Tanmay Srivastava 57, Ravinder Jadeja 24; Timothy Southee 4-29) New Zealand 154 in 50 overs: (C Anderson 34, B Cachopa 24; Yo Mahesh 4-24)