Ireland pushed hosts India all the way to the final hooter in Delhi before narrowly losing out.
The event's two previously unbeaten sides remained on level terms at half-time after Rupinder Pal Singh and Conor Harte exchanged penalty corners.
It appeared that the set-pieces would continue to dominate when Raghunath powered home another corner after the break.
However, Eugene Magee's 51st-minute equaliser came from glorious open play and the Indian winner was also unrehearsed, as Dharamvir Singh found a way past 'keeper David Harte with a clever reverse stick shot.
The visitors failed to pull level a third time, despite a run of four corners in the nail-biting last few minutes of a thrilling fixture.
The result leaves the Irish in second place behind India with two games still to play.
Andrew Meredith's 'Green Machine' will meet Oman, yet to register a point, tomorrow and then China on Sunday. The top two will progress to the elite phase of the league.