Lahiri, who started the day in second place and began well by firing three successive birdies starting from the second hole.
American wins second title at Augusta in three years by three strokes; Spieth, 20, finishes tied second with Blixt.
In 2012, Watson won at Augusta in a sudden-death playoff against Louis Oosthuizen.
Watson mixed five birdies with two bogeys to card a three-under-par 69 on a warm but mainly overcast afternoon.
Spieth, who last year became youngest PGA tour winner since the Depression at age 19, shot a 2-under 70 to share lead with Watson.
American hits 6-under on front nine matching lowest ever at Masters before his form tapers off after the turn.
The Delhi duo of Gulfam and Kapil Kumar along with Noida's Amardip Sinh Malik and Sri Lankan Mithun Perera are joint sixth at four-under-104.
Champion from two years ago, American is the big gainer early on Day Two with 4-under 68.
Blixt took only 11 putts on the way to an outward nine of 33, three under.
As many as 11 golfers, including Anirban Lahiri and Rahil Gangjee ended the day in tied eighth.
Kevin Stadler made it all possible when he won his maiden PGA Tour title at the Phoenix Open in February.
“The game plan is to play four good rounds,” Kuchar told PGATour.com after signing for a 15-under 201 total.
Four-time Masters winner Woods, stuck on 14 majors, had back surgery for a pinched nerve on Monday.
Scott began the day with a seven-shot advantage.
Scott made five putts from about 20 feet or longer, two of them for eagle.
Tiger Woods will miss out on Arnold Palmer Invitational due to recurring back injury.
India's other challenger Gaganjeet Bhullar continued his downward spiral after a great opening round.
Gaganjeet Bhullar, who shot a five-under 67 on first day, was playing in second half of the day in second round.
Tiger Woods delivered the low round of the tournament and his best round of the year.
Woods, who had a blazing finish to his rain-delayed first round making three successive birdies.
Exhausted golfers slumped off the course after a day of battling brutal winds and fatigue.
The redesigned course was put to an early test as a violent storm swept across south Florida.
The string of consistent performances earned him a spot in Team Asia for inaugural EurAsia Cup in Malaysia.
Day became the second Australian to win Match Play title following Geoff Ogilvy, who triumphed in 2006 and 2009.
Perera equalled course record at Bombay Presidency Golf Club, outclassing some of top Indian pros in the process.


