The 26-year-old Kashyap was not in his elements and was completely outclassed by former world number six Sho Sasaki of Japan 7-21 8-21 in his campaign opener, which lasted just over half an hour.
However, World number 28 Jayaram and Gurusaidutt notched up contrasting victories later in the day to keep India afloat in the men's singles event.
Jayaram will take on fourth seed Sony Dwi Kuncoro, who had won the silver medal at the 2007 World Championship in Kuala Lumpur. Gurusaidutt will meet the winner of the match between seventh seed Dane Jan O Jorgensen and Japan's Kazumasa Sakai.
In the women's doubles, Indian pair of Aparna Balan and Siki Reddy N suffered a 12-21 17-21 defeat to local combo of Gebby Ristiyani Imawan and Tiara Rosalia Nuraidah to end their campaign.