England got off to a flyer thanks to Alex Hales's blistering 56 but Yuvraj took three for 19 to rein them in at the Subrata Roy Sahara Stadium.
Luke Wright chipped in with 34 off 21 balls but England lost their last five wickets for 68 runs in 10 overs to finish on 157 for six on a good batting surface.
Skipper and dangerman Eoin Morgan could only muster five.
Yuvraj then hit 38 off 21 balls as India coasted home with more than two overs to spare to gain a small measure of revenge for England's historic Test series victory.
In a ragged bowling display England's new-ball pair Jade Dernbach and Tim Bresnan both started with wides, the first of 10 in the innings.
Dernbach was guilty of three in his first over - before Ajinkya Rahane hoisted both him and Bresnan over long-on for sixes.
Bresnan removed Rahane and Gautam Gambhir in the same over after a 42-run stand.
Yuvraj dominated a partnership of 49 for the third wicket before Stuart Meaker had him caught by Wright when a big hit fell just short of deep square-leg boundary.
But India were already on course for victory and even the dismissal of Virat Kohli, bowled off an under-edge by Meaker, couldn't turn the tide.
Morgan missed a golden chance to run out MS Dhoni when his rival captain fell over mid-pitch but the England skipper's throw was wild.
Suresh Raina was run out with 10 to get but Dhoni sealed the win with 10 runs in four balls from Meaker.