Resuming on 219/1, Panchal (206) and KL Rahul (89) could only add three runs to their 171-run partnership before the latter fell cutting Danny Briggs to sub fielder Jamie Overton at backward point.
Captain Ankit Bawane went for a duck, with his edge ricocheting off Steven Mullaney at second slip into the diving hands of wicketkeeper Sam Billings off the bowling of Zak Chappell.
After Jamie Porter had Ricky Bhui (16) caught by Sam Hain, England’s bowlers were made to toil once more, with Panchal and Srikar Bharat adding 196 for the fifth wicket. Bharat reached his hundred in 105 balls and the following over Panchal brought up his double century with a six back over the bowler’s head.
Panchal departed soon after, gloving a Chappell bouncer behind but Bharat continued his onslaught before falling for 142.
With the declaration coming at 540/6, England’s openers Max Holden (9*) and Ben Duckett (9*) survived five overs before rain brought an end to proceedings.
England Lions trail by 180 runs with all ten second-innings wickets remaining.
“I thought it was a really good effort from all of our guys, in terms of our energy and attitude towards it; we kept plugging away.
“With the first new ball I think we could have had a bit more luck, but full credit to the Indians for really digging in today. Panchal played very simple, very disciplined so full credit to him, and then the counter attacking from Bharat showed some unbelievable striking.
“We’ve seen how they’ve batted on it and now it’s up to us to do the same. There’s no reason why we can’t bat the whole of tomorrow.”
“While bowling 135 overs is tough for the guys, it’s great to see how they dealt with the stress and challenge of the situations they faced.
“This is exactly why we bring these young players to unfamiliar environments; the best international cricketers are the ones who deal well with these sorts of challenges and this is where we find out who has what it takes to compete at the highest level.
“Our boys applied themselves very well throughout the day and they will all have learned a lot; the bowlers about plugging away on difficult wickets and our batsmen will hopefully be inspired by the excellent innings-building shown by the Indians.”