Twenty contestants reached the final
Parveen Sian, 25, will now compete for the UK in the Miss India Worldwide competition in San Francisco next year.
She was one of 20 contestants from across the UK to reach the finals at Coalville, Leicestershire, on Friday.
The rules required them to be aged between 17 and 25, be at least 5ft 3in tall and to be British-born of Indian origin.
Ms Sian told BBC News Online: "I am very, very glad about about the contest.
"It is not just about looks but about truly independent British Asian women who can be multi-talented.
"Being the first winner, I feel a great sense of responsibility to show that the modern British Asian woman can achieve something."
Tickets sold
Ms Sian is hoping her victory will give her the chance to work in the entertainment industry.
The event was a sell-out with reports that at least one person was prepared to pay £1,000 for two tickets.
Organiser Sam Sharma said: "We never thought it would be like that.
"We did not expect it would take off like this at all."
Modern woman
Organisers and contestants maintained the event was much more than a beauty competition.
Arti Thakerar from Leicester, a medical student and a member of Mensa, said: "I think that it shows that the modern Indian women is no longer subservient. She is self-sufficient and confident and has an attitude to move forward in life."
Organiser Vanita Panchal said: "The event is moving away from the notion of beauty-without-brains by focusing on intelligence, ambition, talent, character and beauty equally weighted."
Contestants had to show off their talents in music, dance and public speaking.
Eight judges from the world of theatre and fashion chose the winner.
"It is possible for the winner to go on to the world stage of fashion, Bollywood and modelling other pursuits, that is what we have to offer to young Asian women of today," said Ms Panchal.