The Indians fought hard and reduced the margin twice through goals from Sardar Singh (48th minute) and V R Raghunath (61st minute), but an equaliser eluded them inspite of repeated attacks into the rival citadel.
India have now lost three of their five matches, logging just six points ahead of tomorrow's last league outing against Pakistan.
Argentina have boosted their tally to nine points with three successive wins after starting with two losses. India created many opportunities but were unable to capitalise on them, including a wasted sixth minute penalty corner.