The defending champion women's team, comprising Dipika Pallikal and Anaka Alankamony, went down 0-2 to the Malaysians, who fielded world number one Nicol Ann David and Delia Odette Arnold.
While Pallikal went down 5-11, 5-11, 8-11 to David, Alankamony was outplayed 6-11, 1-11, 5-11 by Arnold.
The men put up a slightly better fight but could not notch up wins with Sourav Ghosal losing 10-12, 12-10, 8-11, 8-11 to Ong Beng Hee.
"Lost 2-0 to Malaysia today. I lost 3-1 to Beng Hee, who played a very good match. Very very disappointed with the result :( Sorry everyone!!," he later tweeted.
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