The 23-year-old had qualified for the finals with a 11.41 seconds finish in the semifinal heats and led the final race from start to finish on Tuesday.
This is the first gold medal for India at this edition of the games. No Indian had qualified for the 100-metre final in the history of the University Games before this.
"With years of hardwork and your blessings, I have yet again broken the record by winning the Gold in 100m dash in 11.32 seconds at The World University Games, Napoli. In the pictures, are the winners too, with a heart of Gold from Germany and Sweden," tweeted Chand on Wednesday.
She also posted a picture of herself with the gold medal and captioned it: "Picked it up". "Pull me down, I will come back stronger!" she tweeted another picture.
Chand, a 100m record holder and winner of two Asian Games silver medals, recently made up the headlines after she opened up about her homosexuality. She revealed that she is in a same-sex relationship with a girl from her home town.
Born in Chaka Gopalpur in Odisha to cotton weavers, Chand has been championing the cause of eligibility of female athletes in track and field events.
( With inputs from IANS )