The Indians kept the Japanese on their toes for the entire first half before succumbing to the home side's sudden but sustained attack in the second, in their last Group B match at the Ota Ciy Gymnasium.
This was the fourth loss in as many matches for the Indians, who made it to the continent's top-flight competition via the qualifying route.
As in the earlier matches, India failed to contain the initial onslaught of their opponents and conceded a six-point lead in the first quarter, which ended at 28-22 in favour of the Japanese. The Indians then made a strong comeback by scoring 19 points as against 16 by the home side to take the half-time break 41-44.
But the third quarter proved the difference. Japan exploded by scoring 23 points as against 13 by the Indians as the home side took a 13-point lead (67-54). The home side maintained the lead throughout the fourth frame and sealed a comfortable victory at the end.
"I am proud of the way my boys fought hard," said a beaming India coach JP Singh.
Singh's opposite number Kimikazu Suzuki said, "It was a real close call. Wasn't it?"
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Kosuke Kanamuru was Japan's leading scorer with seven three-pointers in nine attempts for his 26 points. Kosuke Takeuchi had a double-double with 10 points and 15 rebounds.
Vishesh Bhriguvanshi led India's scoring with 21 points and Amritpal Singh pulled down a game-high 20 rebounds to go with his 13 points.
"The lack of experience has been a problem for us all in the all four games. I think we did play real hard in all our games. We are a young team and we have shown we can play good basketball," Bhriguvanshi said.