In Indore, the home nation batted first and made 292-9 from their alloted fifty overs.
Stuart Broad had India in trouble early on but Yuvraj Singh smashed 118 with Gautam Gambhir adding 70 and Pathan fifty.
Coventrian Bell was run out for one when England batted and although Andrew Flintoff made 43 and Kevin Pietersen hit 33, England struggled to deal with Yuvraj Singh who took 4-28.
Wickets fell steadily and England were all out for 238 meaning a 54 run defeat.
Their next game is on Friday.