After dropping the first set, Tipsarevic showed his class as he ended the Spaniard's giant-killing spree with a 3-6, 6-1, 6-3 victory in a 120-minute summit clash of the USD 450,000 ATP tour event at Nungambakkam tennis stadium.
24-year-old Agut, ranked 80th in the world, had defeated top seed and defending champion Thomas Berdych of Czech Replubic in the quarter finals.
Tipsarevic had lost to Berdych in the title clash last year. He had finished as semi-finalists from 2009 to 2011.
Tipsarevic, who sent down eight aces to seven by Agut, collected 250 ATP points and a cash prize of USD 71,900 while Agut received USD 37,860 and 150 points.
Agut seemed to have gained early control of the final match and looked like he would continue his giant-killing spree and pocket the title as he ran away with the first set 6-3 in 36 minutes.
However, Tipsarevic had other plans and he dug deep into his reserves of experience and made use of his powerful and booming serves to negate the plans of a fighting Agut.
Tipsarevic broke Agut twice in the second set and led 5-0. At this stage Agut, who had developed stomach muscle cramp, had on court medical attention before re-starting the match.