World No. 11 Pallikal lost to Raneem, ranked third, in just 26 minutes to bow of the competition.
The Egyptian had got the better of Pallikal in the last edition in 2012 as well.
Pallikal's best finish at the Worlds came in 2011 when she reached the quarter-finals.
The other Indian in the main draw, Joshana Chinappa had lost in the opening round on Tuesday.
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