Jamie Dwyer gave Australia the lead but Ashley Jackson soon levelled for England in the Pool B encounter.
James Tindall put England before half-time from a short corner variation.
Tindall followed up to score off a post and make it 3-1 and although Australia pulled one back through Dwyer with four minutes left, England held on.
Going into the game Australia had won 28 of the last 33 matches between the two sides, with five draws.
But England, whose previous win over their Ashes rivals came on grass in Melbourne in 1985, produced a superb defensive display to sink the pre-tournament favourites.
Manager Andy Halliday praised the efforts of Cannock goalkeeper James Fair and the penalty corner defence team, but admitted his side had been outplayed.
"It was a fantastic result but the performance could have been so much better," said Halliday.
"I think it's a measure of how much this team has progressed that we can play poorly and beat Australia.
"James Fair and the penalty corner defence were outstanding. We'll certainly not get carried away just because we have won game one."
England's next match is on Tuesday against South Africa, who started their World Cup campaign with a 4-2 defeat by Spain.
Following reports of threats against the World Cup from terrorists, New Delhi's Dhyan Chand Stadium was guarded by nearly 19,000 security personnel to protect players, officials and spectators within a three kilometre radius of the venue.
Paramilitary commandos and a bomb-disposal squad were part of the multiple security cordons inside and around the stadium.
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