After being locked 1-1 at half time, India scored four field goals after the changeover to register their second consecutive win in the four-team women's competition.
India, who stunned higher-ranked China 4-2 in their tournament opener, will take on hosts Japan on Thursday in their last round-robin match, which will also be a dress rehearsal ahead of Saturday's final.
With two wins from as many games, Japan also sealed their place in the final of the women's event. Japan today defeated China 5-1 in another match.
Against Malaysia, the Indian girls were slow to get off the blocks. It was Malaysia who took lead in the 15th minute through a penalty corner conversion by skipper Nadia Abdul Rahman.
But India hit back nine minutes later when Poonam Rani (24th) converted a penalty corner to level the scores.
In the second half, it was India all the way as Neil Hawgood's girls displayed incredible attacking hockey to run away with the match.
Namita Toppo (44th minute), Ritu Rani (52nd), Amandeep Kaur (54th) and Deep Grace Ekka (65th) scored for India to take the game out of Malaysia's reach.


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