Laura Saenger (35th, 38th minute) scored in each half for Germany, while Jaspreet Kaur (12th minute) was the lone goal-getter for the home team.
Germany will now play New Zealand in the title clash tomorrow after the Kiwis beat Australia 3-1 in another league match.
India will now face Australia in the third-fourth place classification match tomorrow.
Contrary to the result, it was the Indian eves who started on a bright note and created their first scoring chance as early as in the eighth minute, only to see Anupa Barla failing to get past the German goalkeeper.
The Indians, however, managed to take the lead four minutes later when Jaspreet converted the lone penalty stroke of the match after Navjot Kaur was brought down inside the box by a German defender.
Stung by the early goal, Germany came hard on the Indians thereafter by creating regular opportunities but goals eluded them.
The Germans, however, restored parity just at the stroke of the half time when Saenger scored from a short corner, last of the three they got in a span of just three minutes.
Riding on the momentum, Germany doubled their just three minutes into the second half with Saenger converting another penalty corner for her side.