India went down to Iran by a solitary goal in their last group match of Asian Football Confederation qualifier in Tehran on Saturday night.
Jalalaldin Alimohammadi scored the winning goal for Iran in the 40th minute at the Paas stadium.
Following the defeat, India finished fourth in Group B with four points.
In previous matches, India lost 2-3 to Lebanon, 0-1 to Bahrain, drew with Oman 1-1 and beat Pakistan 5-0.
Lebanon (9 points) and Oman (8) qualified from Group B.