Filip Krajinovic denied India a place in the Davis Cup World Group by defeating Yuki Bhambri in the decisive reverse singles on Monday to clinch the playoff 3-2 for Serbia.
Krajinovic's 6-3, 6-4, 6-4 victory quashed India's hopes of returning to the World Group after three years.
Serbia, without Novak Djokovic, were banking on Krajinovic to beat the 22-year-old Bhambri after India stormed back through Somdev Devvarman, who rallied on Sunday to beat Dusan Lajovic in a five-set thriller.
Krajinovic was leading 6-3, 4-4 before rain postponed the reverse singles late on Sunday night.
Krajinovic also defeated Devvarman in four sets on Friday to give Serbia 2-0 lead before the Indian pair of Leander Paes and Rohan Bopanna won the doubles and Devvarman pushed the tie into the decider.