Georgia went into halftime with a modest 30-29 lead, but the Bulldogs were unable to hang around in the second half, and were outscored by the Hoosiers, 37-23, in the game's final 20 minutes.
Indiana guard Victor Oladipo led all scorers with 15 points in the game. Oladipo was 6-of-8 shooting from the field, and also grabbed eight rebounds.
Georgia's defense held Hoosiers forward Cody Zeller to just six points.
Kentavious Caldwell-Pope and Vincent Williams both scored 14 points for the Bulldogs in the loss. Caldwell-Pope added six rebounds, but was just 4-of-15 shooting from the field.
Georgia was outrebounded by Indiana in the contest, 35-21. Georgia's offense only produced eight assists, while Indiana had 11.
Georgia will return home to play host to the East Tennessee State Buccaneers on Friday, as Georgia looks to snap a three-game losing streak.