Yuvraj was first instrumental in restricting England to 157/6 with his career best T20I bowling and when he had the bat in his hand he smashed a quick 38 to give India 1-0 lead in the two-match series.
India chased down the target of 158 in 17.5 overs for the loss of five wickets. Yuvraj won his fifth Man-of-the-match award in this format, most by an Indian.
The second and final game will be played in Mumbai on December 22, Saturday.
India were off to a blazing start with openers Gautam Gambhir (16) and Anjinkya Rahane (19) playing big shots. The duo had 42 on the board in 4.3 overs. The hosts were 52/2 in first six overs of powerplay.
Both Gambhir and Rahane departed in the space of four deliveries in the 5th over. Gambhir was caught at the boundary on the pull shot.
Next ball, Rahane had a reprieve on 18. But fell with the addition of just 1 run, two balls later in the same over from Tim Bresnan.
After Rahane's departure, Yuvraj arrived and started to attack spinners Danny Briggs and James Tredwell. One of Yuvraj's sixes off left-arm spinner Tredwell, travelled 91 metres, the longest of the match.
In a bid for his fourth six, Yuvraj perished, caught by Meaker at the boundary off Luke Wright.
Virat Kohli made a 17-ball 21 before he chopped a Meaker ball onto the stumps. With just 10 runs for victory, Suresh Raina (26) was run out and MS Dhoni (24 not out), in the company of Ravindra Jadeja (0 not out) finished things off. Dhoni hit the winning runs.
England 157/6 in 20 overs
Yuvraj returned with his career best Twenty20 International bowling figures of 3/19 in 4 overs to help India keep England to 157/6 in 20 overs in the first T20I here on Thursday. England could have been less than 150 if not for the last-over flourish from Jos Buttler (33 not out) where the team scored 17 runs off debutant Parvinder Awana.
When England batsmen were set to pile up a big score after having made a good start in the first 10 overs, Yuvraj put the brakes on the scoring rate with career best bowling. His previous best was 3/23.
The left-arm spinner dismissed big hitters Luke Wright, Alex Hales and captain Eoin Morgan.
England, from 89/1 in 10 overs, slid to 113/4 in 15 with Yuvraj turning the match towards the home team. In the final 10 overs, England were kept to 68 runs with the loss of 5 wickets.
It was Hales who provided a breezy start for England. The right-hander reached 50 off 28 balls. He and Wright were involved in a half century partnership for the second wicket after Michael Lumb was dismissed for just 1 run off 10 balls. Opener Hales hit 7 fours and 2 sixes in his 35-ball 56.
Toss Report: India opt to field
India captain MS Dhoni won the toss and elected to field first against England in the first Twenty20 International here on Thursday. This is the first of the two T20Is.
England handed T20I debuts to offspinner James Tredwell and fast bowler Stuart Meaker. Spin coach Mushtaq Ahmed handed the cap to Tredwell before start of play.
For India, fast bowler Parvinder Awana plays his first international match. The right-arm fast bowler from Delhi is in India team on the back of impressive performances in this year's Ranji Trophy.
Subrata Roy Sahara Stadium is hosting its first ever international match today. It has hosted IPL matches this year and is homeground of Pune Warriors.
England and India are into T20 mode after having played the four-match Test series earlier this week. England won the Test series 2-1.
India: MS Dhoni (captain), Gautam Gambhir, Virat Kohli, Yuvraj Singh, Suresh Raina, Piyush Chawla, R Ashwin, Parvinder Awana, Ashok Dinda, Ravindra Jadeja, Ajinkya Rahane.
England: Eoin Morgan (captain), Luke Wright, Alex Hales, Michael Lumb, Jos Buttler (wicketkeeper), James Tredwell, Stuart Meaker, Samit Patel, Tim Bresnan, Jade Dernbach, Danny Briggs.
Umpires: Sudhir Asnani and C Shamsuddin
Third umpire: Vineet Kulkarni
Match referee: Jeff Crowe