Both teams enjoyed opening day wins with India sealing a 4-1 victory over Mongolia, while Iran scored eight unanswered goals against Laos.
India came close in the 25th minute but Manglenthang Kipgen shot his free-kick over the bar as neither side was able to break the stalemate in the opening 45 minutes at the Lao National Stadium.
The South Asian side wasted another opportunity in the 60th minute after Kelvin Singh Taorem set up Korou Singh Thingujam nicely, only for the forward to pull his effort just wide.
The miss came back to haunt India as Iran struck in the 88th minute through Yousef Mazraeh to seal the three points and take a huge step towards making the Finals.
Iran will play Mongolia on Sunday.