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The Indian quartet of Muhammed Anas Yahiya, Amoj Jacob, Muhammed Ajmal Variyathodi, and Rajesh Ramesh finished second in heat number one behind the USA (2:58.47) to make it to the final to be held on Sunday.
The top three finishers in each of the two heats and the next two fastest qualify for the final.
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The earlier national record was 3:00.25 set in 2021.
The Indians gave the world record holders Americans a run for their money, finishing closely behind them.
India eventually finished second overall also after the two heats, behind the USA, but ahead of strong teams like Great Britain (3rd; 2:59.42) and Jamaica (5th; 2:59.82).