Bracewell reached his 50 off the penultimate ball and ended up with 53 off 40 balls as the Black Caps, who decided to bat, battled to what was a par score at the Dubai International Stadium on Sunday.
Things could have been much worse for the New Zealanders, though, as India spilled four catches, albeit difficult ones.
Allrounder Bracewell's knock, which featured three fours and two sixes, dragged New Zealand to a respectable score, giving them crucial impetus after Darryl Mitchell had held the innings together with a slow but important 63 off 101 balls amid the trial by spin.
India, the only unbeaten side in the tournament after wins against Bangladesh, Pakistan and New Zealand in the group phase, then Australia in the semi-final, turned the screw with their four-pronged spin attack.
Playing on what's become their 'home' ground in the tournament after the Indian government refused permission for them to travel to host nation Pakistan on security grounds, Rohit Sharma's tweakers made life hard again from the start, just as they had in the 44-run group-stage win over the Black Caps a week earlier.
Key opener Rachin Ravindra again started brightly for the Kiwis, compiling 37 off 29 balls, but he was bowled by a lovely googly, the first ball he'd received from Kuldeep Yadav.
Will Young had already fallen lbw to their previous week's mystery-spin tormentor Varun Chakravarthy, and Yadav (2-40) ensured three wickets had tumbled in just 4.3 overs when Kane Williamson (11) chipped one back to him.
Tom Latham and Mitchell found it hard work, as Ravindra Jadeja (1-30) rattled skilfully through his overs, trapping Latham lbw for 14 along the way before Glenn Phillips tried to inject a bit more oomph into proceedings with his 34 off 52.
But Varun (2-45) bowled him with another unread googly, leaving Mitchell and Bracewell to try to salvage things.
Mitchell's half-century was the slowest in an ODI by a New Zealand batter for 11 years but was, nonetheless, vital.
