Having lost the first three games of the five-match series, New Zealand piled up 259-7 after being sent in to bat, their middle order unleashing a burst of scintillating power-hitting.
Phillips smashed 10 sixes in a 49-ball blitz and with Michael Bracewell (65) added 115 off 41 deliveries to drive New Zealand past 200 in the 16th over.
India never recovered from a ragged start and could muster only 172-9 in reply.
After captain Shreyas Iyer chose to field, seamer Mayank Yadav produced a double strike, but the sixes soon rained at Auckland's Eden Park.
Finn Allen (31) and Daryl Mitchell (24) could not kick on for New Zealand, but Phillips and Bracewell did.
Coming in at number four, Phillips tore into India's attack and reached fifty in 31 balls before shifting gears, his intent epitomised in the 16th over when he clobbered Nitish Kumar Reddy for four consecutive sixes.
India's woes deepened when Naman Dhir misjudged a steepling catch off Phillips on 57.
Bracewell was equally ruthless, needing just 19 balls to reach his fifty.
Reddy ended the onslaught by removing Phillips in the last over, but he could not prevent the first 250-plus total in a T20 International on New Zealand soil.
New Zealand's bowlers started strongly, Jacob Duffy removing Sanju Samson and Ishan Kishan in the opening over, and the wobble became a full-blown crisis when Abhishek Sharma (27) fell to Matthew Fisher after a brisk start.
Dhir made 28, and Tilak Varma made a battling 35, but India were never in the hunt after a poor powerplay.
The final T20I is scheduled for Hamilton before the sides meet in a five-match one-day international series.