India drew 4-4 with South Korea in the final Super 4 game but the result wasn't enough to take the defending champion into the final of the Asia Cup.
India (5 points) finished third in the group behind South Korea and Malaysia, who also had five points each but have a superior goal difference.
South Korea will instead face Malaysia in the final, while India will take on Japan in the third-place clash on June 1.
Nilam Sanjeep Xess, Dipsan Tirkey, Sheshe Gowda and Mareeswaran Sakthivel were the goal-scorers.
It was a midfield slugfest between the two sides as both India and Korea tried to take upper hand in the first quarter.
India secured a penalty corner in the second minute, but Nilam Sanjeep Xess' effort was saved by the Korean goalkeeper Jaehyeon Kim.
But in the ninth minute, Nilam scored with a low flick to the right bottom corner of the Korean net from India's second penalty corner.
Two minutes from the first quarter, India conceded a penalty corner, and Jang Jonghyun helped Korea draw level.
Korea made it 2-1 five minutes later when Ji Woo Cheon chose his spot after being fed by Jungjun Lee following a defensive lapse from Pawan Rajbhar inside his own circle.
But India drew level three minutes later when Dipsan Tirkey converted team's third penalty corner. Mahesh Sheshe Gowda restored the lead a minute later, pushing home Vishnukant Singh's pass from a counter-attack.
Korea secured another penalty corner. But this time, the Indians defended well to deny Jang.
Two minutes from halftime, Kim JungHoo equalised for Korea through a fine field goal from an acute angle as both the teams went into the breather locked 3-3.
India went all out and restored its lead in the 37th minute through an unmarked Shakthivel Mareeswaran, who tapped in a cross from Sheshe Gowda from the right flank.
In the 42 minute, Uttam Singh missed a sitter when he failed to connect Rajkumar's cross standing in front of open goal.
A yellow card -- five minute suspension -- to Yashdeep Siwach three minutes from the third quarter cost India dearly as Korea equalised again when Manjae Jung deflected in a long ball from midfield.
Just 27 seconds from the final hooter, Karthi Selvam came close to handing India the winner. But Korean goalkeeper Kim Jaehyeon made double save to deny the title holder a last-gasp winner.