Rupinder Singh converted a last minute penalty corner to score the winning goal after India made a comeback from being 1-3 down at half-time.
India looked hurt and it showed in the way they reacted after two consecutive defeats to almost beat Olympic champions Germany on Monday.
Argentina continued their giant-killing spree and scored a 3-2 win over Belgium, while the Netherlands beat Australia by a solitary goal.
India began 2014 on a rusty note as the team looked out of sync and a distant second against a superior England outfit.
Argentina will play The Netherlands in their tournament opener on January 10.
India aim to win their Hockey World League Finals opener Jan 10 against England, said defender VR Raghunath on Tuesday.
Australia aim to win the Hockey World League Final to be held at the Major Dhyan Chand National Stadium from Jan 10-18.
Niklas Wellen slammed a brilliant hat-trick to guide defending champions Germany to their record sixth world title, beating France 5-2.
The Netherlands spanked Malaysia 7-2 to bag the bronze medal in the Junior Men's Hockey World Cup at the Major Dhyan Chand Stadium on Sunday.
India locked horns with archrivals Pakistan for the 9th-10th place playoff at the Major Dhyan Chand National Stadium on Saturday.
France stunned Belgium, Malaysia beat Korea, Netherlands defeated New Zealand and Germany ousted Australia in the quarter-finals.
Belgium seem ready to take on France in the quarter-final to be played at the Major Dhyan Chand National Stadium on Thursday.
Needing a win to reach the quarter-finals, India squandered a 3-1 lead to concede late goals that earned Korea a 3-3 draw to help them progress on better goal difference.
Germany made a statement why they are the defending World Champions by decimating minnows Egypt 6-0 to qualify for the quarter-finals.
An impressive Malaysia scored two goals on either side of the break to shut the door on England with a 4-2 win.
India fought well but the Dutch managed to hold onto their slender lead for 28 minutes in the second half to win the Pool C fixture.
India open their campaign in the 10th Junior World Cup with a tough Pool C encounter against the Dutch team.
Spain coach Xavi Arnau said a strong defence and fast attack may lead them to victory against France in the Hockey Junior World Cup.
Pakistan, who were champions in the inaugural edition in 1979, are in tough Pool A with record five-time champions Germany, Belgium and Egypt.
The Sports Minister said that the government was mulling over conferring the Bharat Ratna on hockey wizard Dhyan Chand.