Iran's Sepehr Boroujeni Safari, who was seventh in the qualification, shot 198.7 in the final to emerge as the surprise gold medallist ahead of world number five Vladimir Issachenko of Kazakhstan and world number eight Rai.
Gurpreet, ranked 26th, fired 197.6 to win the silver ahead of Rai, who finished third with a total score of 177.6 at the Karni Singh Shooting Range. Rai had topped the qualification with 583.
There was disappointment for the third Indian shooter in the fray, Omkar Singh, as he was the first one to be eliminated and finished eighth.
Despite Safari's 10.8, Rai led the field after the first three shots with 31.3. The World Championship silver medallist and Asian Games gold medallist maintained the lead in the next three shots, as Issachenko shot to the second position.
Rai kept the lead for a while before Safari jumped to the top spot with a 10.5 even as the Indian managed a modest 9.6.
Rai finally found his golden touch firing an impressive 10.9, the only one to reach the mark in the final, but that was not enough and he had to contend for bronze with Gurpreet managing 10.5.
In the last attempt, Gurpreet shot another 10.5, but Safari's (8.9) lead was too much to be overtaken.
India won the team gold in the event with Rai (583), Gurpreet (576) and Omkar (575) aggregating 1734. The team silver went to Kazakhstan while Saudi Arabia was third.
Mohamad Ahmed of Bangladesh bagged the bronze in the junior section.
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