City's Bernardo Silva and Mateo Kovacic both misfired in the shootout to put Madrid in the driving seat
Bangladesh, Nepal, Bhutan, Maldives, Sri Lanka and Pakistan are the other SAFF nations to have left South West Asian Football Federation (SWAFF) on the eve of the Asian Football Confederation (AFC) congress in Kuala Lumpur.
"The withdrawal precedes the expected official recognition of AFC's five Regional Federations by the AFC Congress on Wednesday..." the All India Football Federation (AIFF) said in a statement.
AFC president Sheikh Salman bin Ebrahim Al Khalifa is expected to seek support at the Congress for his reelection in April when he is likely to face challenge from SWAFF head Adel Ezzat of Saudi Arabia.