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.
Agut had no clue on the proceedings in the second set as he was finding difficult to gain points in his own service where Tipsarevic ruled the roost. Agut somehow managed to win his first game in the second set before the Serbian claimed it 6-1.
The third set also went in almost the same manner for Tipsarevic as he maintained the tempo and rose to 3-2 lead with a break in the third game. The fourth game was replete with rallies and Agut suddenly got his act together to break the rally and win the game with a fine effort.
Tipsarevic was, however, not unduly perturbed and he held onto his own as he won the ninth game to take the decider and clinch the match and title.
Bejing Olympics gold medalist Stanislas Wawrinka of Switzerland and Benoit Paire of France won the doubles title with a 6-2, 6-1 victory over Germans Andre Begemann and Martin Emmrich in the final.
It was a consolation for Wawrinka, winner of the singles title here in 2011, to have won the doubles title.
The champion duo put up an authoritative display and showed great coordination and cohesion to clinch the title.
Wawrinka and Paire pocketed USD 21,120 and 250 ranking points each.