The 7-6 (7-3) 4-6 6-1 loss resulted in a quick exit from a tournament the Serbian has won five times.
Federer and 10th seed Djokovic both came into the tournament seeking to become the first six-time victor of the event. "So talking about faster, I just think there is more bounce to it, especially if you play someone who has a lot of spin like he has and kicks the ball around a lot".
A five-time Indian Wells champion Roger Federer couldn't finish his second round match against Federico Delbonis on Saturday night, leading 6-3 2-2 before the rain halted the action and send it to Sunday.
For now, Del Potro - given his strong start to 2018 - would appear to be Roger Federer's major rival in Indian Wells. He then made a decision to stop and have an operation to heal his elbow injury.
Daniel's third-round opponent is Argentina's Leonardo Mayer, who had been scheduled to play Japan's Kei Nishikori in the second round before the world No. 25 withdrew through illness. Find us on Facebook too!
Djokovic underwent right elbow surgery after falling in the fourth round of the Australian Open in January.More news: Drama over Rathwa's Rajya Sabha nomination ends with acceptance
Djokovic said it felt like the "first match I ever played on the tour". "Very weird. I mean, I just completely lost rhythm, everything".
"To me, it's not that surprising". "When you go away from the game for over a two-month period, it starts feeling a little bit that way".
"It is still early stages for Novak coming back and the first one after surgery".
"I have been sick for over a week and tried everything I could to get better".
Daniel, who is ranked 109th in the world, advanced to the third round where he will face Gael Monfils of France. Krajinovic, who reached the final at the Rolex Paris Masters past year, defeated American qualifier Mitchell Krueger 6-2, 6-2 on Saturday.
Other seeded players who lost were ninth-seeded Lucas Pouille, who fell 6-4, 6-4 to Yuki Bhambri; 14th-seeded Diego Schwartzman, 7-5, 6-4 to Marcos Baghdatis; 21st-seeded Kyle Edmund, 6-4, 6-4 to Dudi Sela; and No. 24 seed Giles Muller, 6-3, 7-5 to Pierre-Hugues Herbert.