In a rather lopsided contest, the Indian were trailing 11-24 at the end of the first 30-minute period before losing the the next period 9-15.
Mahesh Vijay was the top-scorer for the Indians, netting five goals in nine attempts, while Manpreet Singh Bassi, Vasu Binu and Avin Khatkar contributed three each.
For the Taipei team, Yi-Fan Chiu stole the limelight by converting eight of his nine shots at the goal. Hsien-Chang Chao scored five goals, while Hsin-Wei Huang and Hui-Hsiung Wang netted four each.
The Indian goalkeepers, however, managed to keep out just nine of the 48 shots fired at them.