Unseeded Prannoy came from a game down to beat his much-fancied opponent 18-21 21-13 21-12 in a 55-minute second round contest.
Prannoy had beaten Michael Lahnsteiner of Austria 18-21 21-9 21-12 in the first round.
The world number 97 Indian next takes on 15th seed Tien Chen Chou of Chinese Taipei in the round of 16.
Earlier, world number nine and fifth seed Indian Parupalli Kashyap entered the second round with a comfortable 21-7 21-19 victory over Hsuan Yi Hsueh of Chinese Taipei.
London Olympics quarterfinalist Kashyap will take on Germany's Dieter Domke in the second round.
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