Indian women failed to qualify for the finals after going down fighting 1-2 to South Africa in a crucial round-robin match of the four-nation Hockey Tournament in Parana, Argentina.
India required a draw to qualify for the finals against world champions Argentina but couldn't overcome the higher-ranked South Africans.
South Africa led 1-0 at half time with Kate Woods opening the scoring in the 20th minute.
In the beginning of second half, India tried to make a strong comeback by playing some attacking shots and in the 38th minute, Jaspreet Kaur scored the equalising goal.
But in the 45th minute, South Africa's Marsha Marescia scored another goal to make it 2-1 for South Africa, who scored both their goals through penalty corners.
India will now play against Ireland for the bronze medal on Monday.