Rahul dominated the run chase, smashing 10 fours and five sixes, as India romped home with 10 balls to spare at Old Trafford.
After following up a 5-0 whitewash in the ODI series against Australia with a comfortable win in the one-off T20, England were found wanting against vastly superior white-ball opponents in India. Morgan was caught in the deep off a slog sweep and then, in the space of two balls, both Jonny Bairstow and Joe Root were stumped for golden ducks.
Hales (8) was put out of his misery by Kuldeep in the next over, bowled sweeping, but it was the spinner's next over that really did for England.
"Kuldeep's one over really turned the game for us and it was just wonderful to watch", Kohli said.
"If you want to take wickets, you need to turn the ball".
Using his googlies, Kuldeep bamboozled the English batting line-up and the wrist spinner said his three-wicket over changed the momentum of the game in India's favour.
With only 30 needed from more than seven overs, he and Rahul took their time, dealing in singles, but it only delayed the inevitable.
Yadav was introduced into the attack in the 10th over with England on 72/1 and Jos Buttler on rampage.
"Obviously they (Bairstow and Root) are quality batsmen".
India can now wrap up the three-match series in Cardiff on Friday, while an England win would send it to a decider in Bristol on Sunday.
England's batsmen were "completely deceived" by Kuldeep Yadav in the opening Twenty20 worldwide against India, conceded skipper Eoin Morgan, saying his side will have to revisit its plans on tackling the wrist spinner.
India: Rohit Sharma, Shikhar Dhawan, Lokesh Rahul, Virat Kohli (c), M.S. Dhoni (wk), Dinesh Karthik, Hardik Pandya, Bhuvneshwar Kumar, Umesh Yadav, Krunal Pandya, Yuzvendra Chahal, Suresh Raina, Shreyas Iyer, Kuldeep Yadav, Siddarth Kaul, Deepak Chahar.
"We didn't get enough runs and were probably 30-40 runs short". "The start we got off to was brilliant".
Who knows, we might see them doing commentary in the tournament!
Going into the Manchester ODI on Tuesday, all eyes were on Dhoni, who was just a catch away from striking a half-century there but all he could be involved were the two stumpings he enforced that dismissed Jonny Bairstow and Joe Root on two consecutive deliveries. He bowled 14 dot balls. The crafty spinners have been troubling oppositions at will as they have been able to take wickets consistently in the middle overs even in unhelpful conditions. It could have gone the other way if we had taken our half chances, like Chris Jordan on the boundary, or if Rahul got caught at point early in the innings. Rahul continued his glorious run with the bat, dominating the partnership with Rohit, who uncharacteristically played the flawless second fiddle to the Karnataka youngster.
Adil Rashid eventually broke the 123-run stand, Rohit (32) driving Rashid (1-25) straight into the hands of Morgan at covers, allowing the raucous Indian fans following a glimpse of Virat Kohli before the chase was done.