England knew that victory would have all but sealed their place in the medal rounds following wins in their opening two games, but they suffered an unexpected setback as India came from behind to win.
The world's number two-ranked side could not have got off to a better start either, taking the lead after only 35 seconds when Alex Danson broke the deadlock.
That was not a sign of things to come, however, as the two sides cancelled each other out for the rest of the first half before India levelled things up through Navneet Kaur 12 minutes into the second half.
India themselves still have hopes of qualifying for the medal round, and a penalty stroke from Gurjit Kaur in the final quarter ensured that they are now very well-placed to do that.
Kaur's strike proved to be decisive as England failed to find a way back in the closing stages, leaving them now level on points with India at the top of Pool A.
India would now confirm their place in the medal rounds with victory over South Africa on Tuesday, while England will also be fighting for a place on the podium if they beat winless Malaysia on Monday.