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Chinese Taipei and Malaysia finished as the top two teams from the group to qualify for the quarterfinals.
P V Sindhu's gallant fight agaainst Tai Tzu-ying ended in agony.
India have been placed in Group C along with Malaysia, Chinese Taipei and Australia and their first task will be to make it to the knock-out stage from a potentially trick group.
The absence of double Olympic medallist P V Sindhu, London Games bronze medallist Saina Nehwal and men's doubles pair of Chirag Shetty and Satwiksairaj Rankireddy hurt India's chances.
Sameer Verma suffered a shocking straight-game loss in men's singles on Tuesday as India were stunned 2-3 by a young Malaysia in a group match.
17-year-old An Se-Young roared back from a game down to defeat Tai 14-21, 21-18, 21-16 in 66 thrilling minutes.
Sameer Verma fought for an hour and 11 minutes in the men's singles tie before losing 17-21 20-22 against Olympic champion Chen Long.
Results 1-7
