Gill's MRF team-mate Ole Christian Veiby of Norway, who had been leading the championship points, retired on stage 3 after going off the road, said a press release here.
In the same stage, Finland's Jari Ketomaa retired after taking a jump too fast and ripping off his sump guard, while 5th placed Mike Young retired with engine problems.
India's Sanjay Takale was forced to stop after suffering two punctures in his Mitsubishi Mirage.
"It will be good to start tomorrow in the lead, we need to finish the rally to be on top," Gill was quoted as saying.
In 2nd place is Japan's Yuya Sumiyama, driving the Cusco Skoda R5, and is followed by Swedish driver Robert Blomberg in an AP4 Mitsubishi Mirage.
Veiby is expected to restart tomorrow.