India went down 0-1 to Iran in its second match of the AFC Under 20 Asian Cup qualifiers in Vientian, Laos on Friday.
India looked good for a point against the three-time champion before it conceded a goal in the 87th minute.
The defeat leaves India on three points from two games. India won its opening game 4-1 against Mongolia on Wednesday.
India remains second in Group G behind Iran, which has six points from two matches.
READ | India begins AFC Asian Cup U-20 qualifiers with 4-1 win over Mongolia
Ranjan Chaudhuri’s boys will play their last group match against host Laos on Sunday.
The top teams from each group, along with the five best second-placed teams from 10 groups will qualify for the tournament proper in China next year.