The action was played in front of a buoyant partisan home crowd in Pokhara but it was India who got the better of the early exchanges and almost took the lead in the 10th minute through Ratanbala Devi, whose shot from close range was off-target after some great work from Dangmei Grace down the right flank.
However, just eight minutes later, Bala put the Indian side in front with a headed goal successfully converting a corner from Grace.
Almost immediately, the hosts threatened to score but Aditi Chauhan stood tall in goal for India, making a fine save from a shot from inside the penalty area.
Bala Devi almost made it two for her side in the 41st minute but her shot in a one-on-one situation was saved by the Nepal keeper. On the rebound, Sandhiya Ranganathan's follow-up was wide of the mark as the Indian side headed into the breather with the lead.
The second half saw Nepal push for the all-important equalizer but the Indian defenders were up to the task and were determined to make it three clean sheets in a row. The home side looked to threaten from set-piece positions. However, the backline led by Ashalata Devi remained rock solid and closed out the game comfortably.
The result means that the Indian side, who are the defending champions, continue their perfect run in the SAG 2019 so far after registering 5-0 and 6-0 wins over Maldives and Sri Lanka respectively in the last two games.
The gold medal match will be played between India and Nepal at the same venue.
( With inputs from IANS )