Malvika Bansod defeated Nehwal 21-17, 21-9 in the second-round match which lasted for 35 minutes.
Having last played in October (she retired due to injury then), Saina entered the India Open in a bid to find her feet and regain some vital match practice ahead of a big season.
Malvika Sood's joining the party will be a 'game-changer', said Punjab Congress president Navjot Singh Sidhu.
Actor and philanthropist Sonu Sood said on Sunday that his sister Malvika is joining politics, but he has no such plans for himself.
Men's singles and women's doubles features B Sai Praneeth, Kidambi Srikanth and the pair of Ashwini Ponnappa and N Sikki Reddy in the team.
A new format was applied in order to conduct the trials, according to BAI.