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Belgium beat the last two editions' runners-up Netherlands in a penalty shootout 3-2.
Abhishek and Harmanpreet Singh scored a brace each at the Birsa Munda Hockey Stadium.
PR Sreejesh suffered an injury in the shootout that the hosts lost 4-5.
India took a 2-0 lead through goals from Shamsher Singh (21st) and Akashdeep Singh (32nd) before Wales stunned the home team with twin strikes in a span of two minutes.
The hosts had earlier started their campaign with a 2-0 victory over Spain.
A win against England, ranked fifth in the world, on Sunday will help India put one foot in the quarterfinals of the World Cup.
Amit Rohidas and Hardik Singh scored as the hosts won 2-0.
The veteran goalkeeper will be playing in his fourth World Cup and third at home.
A medal in this showpiece will strengthen the claim that the former giants of the game have turned the corner in world hockey.
Australia coach Colin Batch said they have strong fundamentals to win the title this time around.