Prannoy will take on Rajawat in the second round.
In the men's doubles however, the Indian pair of MR Arjun and Dhruv Kapila lost to 11th seeded Russian pair of Vladimir Ivanov and Ivan Sozonov 11-21, 16-21 in a second round match that lasted 41 minutes.
Shetty had earlier shocked former world champion Loh Kean Yew of Singapore in straight games in his opening round.
The Indian combination of Satwik and Chirag will play the Chinese pair of Xie Hao Nan and Zeng Wei Han in the next round.
Two-time Olympic medallist PV Sindhu and HS Prannoy have been handed relatively easy groups for the Paris Games, which begin on July 26.
Fellow Indian Kidambi Srikanth also jumped two places to sit at the 12th spot, while Lakshya Sen continued to be the best-placed Indian male shuttler at world number 9.
P V Sindhu has made early exits in as many as seven of the 12 BWF World Tour events this year.
In mixed doubles, the husband-wife Indian pair of B Sumeeth Reddy and N Sikki Reddy defeated Malaysia's Wong Tien Ci and Lim Chiew Sien 21-17, 21-19.
However, it was curtains for Kiran George in the men's singles event as he lost 20-22, 6-21 against seventh seed Kenta Nishimoto of Japan.
HS Prannoy climbed up two spots to achieve a career-best world number seven
HS Prannoy breezed into the quarter-finals with a stunning straight-game win over former world champion Loh Kean Yew of Singapore but it was curtains for Kidambi Srikanth at the Japan Open Super 750 tournament.
Top seed Dionysius Hayom Rumbaka of Indonesia ended the impressive run of Indian shuttler HS Prannoy in the Vietnam Open Grand Prix final in Ho Chi Minh City.
New Delhi has been chosen as the host city of the next Badminton World Championships in August 2026, the sport's global governing body BWF announced on Monday.
This is Sindhu's third consecutive first round loss.
HS Prannoy said continuous experimentation has been the key to his "special" season as he reached his second final of the year at the Australian Open Super 500 tournament in Sydney.
Prannoy reached the World Championships on previous two occassions.
The world number nine will play Hong Kong's fifth seed Angus Ng Ka Long in the last eight stage.
Prannoy looked in good touch as he reeled off five points on the trot to zoom to a comfortable 11-4 lead. However, the Indian was guilty of missing the lines twice and also found the net, allowing Wang to cut the deficit to three points at 11-14.
The left-handed Chinese put a lot of power in his smashes and his hold-and-flick shots also caught Prannoy off guard as he entered the first interval lagging 6-11 after two unforced errors.
However, the tournament was over for fourth seed Sameer Verma after he retired hurt against Ireland's Nhat Nguyen.
Prannoy registered a 21-18, 22-20 win over the world number 12 Chen
Seventeen-year-old Unnati, champion at the 2022 Odisha Masters and 2023 Abu Dhabi Masters, was no match for world No. 2 and top seed Pornpawee Chochuwong, going down 14-21, 11-21 in just 39 minutes.
Sindhu registered a stunning comeback win against Thailand's Phittayaporn Chaiwan
Indian ace shuttler HS Prannoy produced a remarkable performance as he breezed past Malaysia's Joo Ven Soong to progress through to the second round of the China Masters here on Tuesday.
However, the Indian duo of Venkat Gaurav Prasad and Juhi Dewangan suffered a crushing 8-21, 4-21 loss to Denmark's Mathias Thyrri and Mai Surrow, the mixed doubles first round match lasting barely 21 minutes.
HS Prannoy went down fighting to World No 7 Japanese Kodai Naraoka in a thrilling quarter-final at the Malaysia Open Super 750 badminton tournament.
Satwik and Chirag have looked in ominous form, winning the Asian Games gold in Hangzhou, a Super 1000 crown in Indonesia, the Korea Open Super 500 and the Swiss Open super 300 last year before grabbing a a career-best ranking of World No.1, albeit for a brief time.
BAI General Secretary Ajay Singhania said that BAI is in receipt of the letter from the shuttler.
India's Ayush Shetty produced a sensational straight-game victory over former world champion Loh Kean Yew of Singapore at the Orleans Masters.
Srikanth, Prannoy enter pre-quarters; Aakarshi knocked out
India's men's singles campaign suffered a setback as none of the players could make it past the opening round on Day 2 of the India Open in New Delhi on Wednesday.
Sindhu pulls out of Uber Cup
P V Sindhu knows how to win big tournaments, but as she enters her 30s, the two-time Olympic medallist must be selective about which competitions she chooses to go "all out" in, feels London Games bronze winner Saina Nehwal.
HS Prannoy becomes the first player to beat Tokyo Olympics gold medallist Victor Axelsen in full a match since March.
Prannoy signs off with maiden World Championships bronze medal after losing semifinal to Vitidsarn
Satwiksairaj Rankireddy and Chirag Shetty gained a place to achieve a career-best ranking
'All the matches are going to be tough but I have to shrug it off and get ready for tomorrow's match.'
Two-time Olympic medallist P V Sindhu sailed into the quarter-finals in the singles event at the Badminton Asia Championships with an easy victory over China's Han Yue.
Double Olympic medallist PV Sindhu fought valiantly but was outperformed by sixth seed Han Yue of China in a gruelling pre-quarterfinal of the Badminton Asia Championships in Ningbo on Thursday.
Star Indian shuttlers PV Sindhu and Lakshya Sen will spearhead a strong contingent at the USD 250,000 Swiss Open, beginning on Tuesday, aiming to regain top form.
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