Having arrived at the crease with his side struggling at 86-3, Rahane hit his second Test century off 151 deliveries before falling three balls later for 103 with the score on 275-9.
The 26-year-old was instrumental in the tourists' recovery and, with the support of Bhuvneshwar Kumar (36), put on 90 for the eighth wicket as England toiled on a day when much of the focus fell on James Anderson and Ravindra Jadeja.
Anderson, who hit 81 in his record-breaking last-wicket stand of 198 with Joe Root in the first Test, received an ICC charge for an alleged altercation with Jadeja after that match, but quickly set about proving his worth with the ball on Thursday.
The pace bowler took 4-55 and accounted for the dangerous Rahane to ease some of the hosts' frustrations.
Jadeja had less of an impressive day as he failed with the bat, scoring just three runs, much to the delight of the crowd, who booed him on his way to the crease and again on his way back after being dismissed by Moeen Ali (1-38).
However, England's bowlers were unable to dislodge the tail as the momentum they created after lunch slowly ebbed away as India set a competitive total.
After the tough conditions in Nottingham saw bowlers from both sides struggle, the sight of a green-looking wicket was exactly what both captains had called for following the opening draw.
Alastair Cook had no hesitation putting India into bat having won the toss and he was immediately rewarded with the dismissal of Shikhar Dhawan for seven in the third over.
However, England's bowling was not as potent as it should have been, a problem that hampered them all day.
The home side's best spell with the ball came after lunch as they picked up wickets at regular intervals to slow India's run-rate.
The cheap wickets of Jadeja, MS Dhoni (1), and Stuart Binny (9) left the tourists in trouble at 145-7, but Rahane and the tail showed resistance again as England faltered.
India closed the opening day with Ishant Sharma and Mohammed Shami unbeaten on 12 and 14 respectively.