Sudha's new record -- 9:26:55secs -- rewritten 15 days after Asian champion Lalita Babar's national mark in New Delhi last month, has intensified the friendly rivalry between the duo who train under same foreign coach Nikolai Snesraev.
Lalita has already qualified for the Rio Olympics in women's 3000m steeplechase.
For Sudha, the the IAAF Diamond League race was her first international outing on track since the 2014 Asian Games and she admitted to have butterflies in her stomach prior to the prestigious event in Shanghai where she finished eighth in the women's 3000m steeplechase.
Sudha, who finished fourth in her pet event at the 2014 Asian Games, said coach Nikolai had motivated her to do well and "gift something back to her countrymen for their support".
"I was unable to run my natural style in Shanghai but these things happen in our career. I will now concentrate on bettering my performance," said Lalita who clocked 9:43.30secs to finish 13th in Shanghai.