England captain Andrew Strauss hit his highest score of the series, 52 not out from 83 balls with 10 fours, as the hosts steadily eroded the tourists' lead. Alastair Cook was unbeaten on 27 at the close of play.
Earlier, England bowlers Stuart Broad took 4-53 and Tim Bresnan 4-62 to skittle India, though captain Mahendra Singh Dhoni hit 77 from 96 balls with 10 fours and three sixes.
Dhoni put on an eighth-wicket stand of 84 with Praveen Kumar (26) to help rebuild the innings from 111-7 after Bresnan and Broad had run through the visitors.
India trail 2-0 in the four-test series and will lose the No 1 ranking if England win by two matches.
"It was a great day for test cricket," Bresnan said. "To stick them in and bowl them out for 224 and then be 80-odd for nought is very much a day you'd take if offered it."
India coach Duncan Fletcher claimed his side were still struggling to adapt to English conditions.
"They're finding it difficult to handle the swing bowling at the moment," he said. "When any side comes to England, not only India, you see them struggle early on with the swing and the seam. How can you go out there and practise against swing when there isn't any swing bowling in India?"
Having been sent in to bat, India lost four wickets in each of the first two sessions with the ball considerably in the overcast conditions and swirling wind, and Strauss' decision to bowl after winning the toss was quickly vindicated.
Although Gautam Gambhir took eight from James Anderson's first over, Virender Sehwag - who missed the first two tests with a shoulder injury - made the worst possible return. He was caught by wicketkeeper Matt Prior off the seventh ball of the day, a delivery from Broad that veered near his waist.
Sehwag was initially given not out but England instantly asked for a review, which proved Sehwag had gloved the ball - the first he'd faced.
Gautam Gambhir and Rahul Dravid then survived a tricky hour of unsuccessful lbw appeals and edges that fell just short of slip, with a mixture of skill and luck.
England responded by switching tactics to set defensive fields and the pressure told in the final 40 balls of the first session as three wickets fell.
The breakthrough came in the 20th over when Gambhir dragged a delivery from Bresnan on to his leg stump for 38.
Sachin Tendulkar was given a standing ovation as he walked to the crease by a crowd predominantly supporting England, but he scored 1 from eight balls before Broad found his edge.
Bresnan then ended the morning session early with a beautiful delivery that clipped the off stump of Dravid (22).
Asked if he'd ever bowled a better delivery, Bresnan replied: "Only in the nets."
India went to lunch at 75-4 after losing 3-16 in the final half hour and the team's situation soon worsened.
Suresh Raina added 4 before he was bowled by an inswinger from Anderson with the total on 92. Eight runs later, VVS Laxman looked in reasonable touch but fell for 30 when he attempted to hook Bresnan and was caught by Broad at fine leg.
Amit Mishra was then caught behind off Broad for 4, bringing Dhoni and Kumar together to launch their counterattack.
Dhoni smashed a savage six over long-off to bring up India's 150. Kumar was similarly aggressive, bringing up the 50 partnership off 54 balls by thumping Graeme Swann through long-off for four, then hitting the next ball through point to the boundary.
In the next over, Dhoni swatted Bresnan for a six over midwicket and brought up his 50, from 62 balls, by driving Swann through point for four in the next over.
Kumar then hit a towering six off Swann over long-on, but his gutsy innings ended upon referral after attempting to hook Bresnan and feathering a touch behind.
The evening session began in desultory fashion, with England putting eight men on the boundary in an attempt to keep Dhoni off the strike.
With Dhoni trying to protect partner Ishant Sharma and unwilling to take a single, a sterile passage of play followed until Dhoni flashed at a ball from Broad and was caught at first slip by Strauss.
Before a run was added, Anderson wrapped up the innings when Cook took a superb reflex catch at silly point to dismiss Sharma for 4.
India bowled three successive maidens at the start of the England innings, but the hosts steadily eroded India's lead, with Strauss bringing up his 50 from 76 balls.
"Unfortunately, that toss was quite important," Fletcher said. "We looked to be going all right at one down but those (three) wickets they took before lunch put us on the back foot."
