UPDATE 2-Vodafone says pressures in India and UK to weigh on earnings

* Q3 organic service revenue up 1.7 pct

* Emerging markets dragged lower by India competition

* Rivals EE and O2 step up pressure in UK

* Sees full-earnings towards bottom of range

* Shares down as much as 3 pct (Adds CEO, CFO comments, analyst reaction, share price)

By Paul Sandle

LONDON, Feb 2 (Reuters) - Cut-throat competition in Indiaand an onslaught from rivals in its home market promptedBritain's Vodafone to nudge its full-year earningsguidance down on Thursday sending its share price lower.

Competition in India has been ramped up by free offers fromnew entrant Reliance Jio Infocomm, but Vodafone plansto fight back by merging its Indian subsidiary with smallerrival Idea Cellular.

"This is about creating an amazing asset and a very strongcompany, not about retrenching," Vodafone Chief ExecutiveVittorio Colao said.

Vodafone, the world's second-biggest mobile phone group, hasbuilt its name through rapid global expansion in a series ofbold deals in the 1990s and 2000s and is the second-largestplayer in India.

Overall, service revenue in Europe grew by 0.7 percent inits third quarter, down from 1 percent in the second quarter. Inits emerging markets -- including India, Africa and Turkey --growth slowed to 3.9 percent from 7.1 percent.

Shares in the company fell as much as 3 percent on Thursdaymorning. By 0934 GMT they were down 1.3 percent at 190 pence

Britain remained tough, with service revenue declining by3.2 percent, which it said reflected increased competition inthe business sector, an area of strength for the operator.

Finance Director Nick Read said the company was seeingcompetition in corporate business from EE, now owned by BT, and from O2, owned by Telefonica.

"Everyone is chasing growth and customers," he said.

Vodafone reported a 1.7 percent rise in overall organicservice revenue for the quarter, broadly in line with analystexpectations.

The company reiterated its target to generate at least 4billion euros of free cash flow in the year to March 31, but itsaid it now expects core earnings to come in at the lower end ofa range of 3-6 percent growth.

"These results are not surprising given the evidence of thedeterioration in India but have few specific positives either,"Citi analysts said.

"The effective cut to EBITDA guidance looks realistic butwill raise questions about full-year 2018 trajectory." (Editing by Kate Holton and David Goodman)