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Indian team captain Manpreet Singh said the team has made a lot of improvements in the 2 years leading up to the world cup.
Spain's Albert Beltran and Alvaro Iglesias scored in the first half to put their team ahead.
Germany finished on top of Pool D, ahead of second placed Netherlands and third-placed Pakistan.
Pakistan's miserable campaign at the tournament finally came to an end after Olympic silver medallists Belgium thrashed them 5-0.
With this win, the Dutch extended their win streak against India to 7-0 in World Cup.
The draw kept both Spain and France in the hunt for the knock-out round with one point apiece from two games.
Argentina will play New Zealand in their next pool match on December 3, while Spain will be up against France.
World number five India are eyeing to reclaim the World Cup after 43 years, a title which they won only once way back in 1975 in Kuala Lumpur.
China will next play Ireland on December 4 while England will be up against reigning world champions Australia.
Results 31-39
