India lost 12-25 25-23 26-24 20-25 7-15.
India had defeated the host club team Henan Tianguan 25-19 23-25 25-22 23-25 15-11 yesterday.
India play China tomorrow.
Australia were to participate in the tournament as the fourth team but had pulled out at the last minute and were replaced by Henan Tianguan, a club in the Chinese volleyball league.