The Indians dominated the first-half and were unlucky to miss out on their second consecutive victory.
They created around half a dozen clear chances most of which came off the woodwork.
India, who beat Thailand 4-1 in their campaign opener, now have 3 points from two matches.
The UAE, who drew 1-1 with Bahrain, have four points from two matches.
The UAE took the lead against the run of play when Khalfan Mubarak (41st minute) produced a well-placed finish a short while before the break.
The hosts played better in the second-half even as the visibility disheartened Indians tried hard for the equaliser.
The UAE got their second goal a couple of minutes before the end of regulation time when a long ball caught most of the Indian defence out of position and Ali Mabkho (88th) scored with a cool finish.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)