India produced a lacklustre display and crashed out of the title race in the 22nd Lal Bahadur Shastri under-21 women's hockey tournament after losing 1-2 to Germany in Delhi on Friday.
Laura Saenger (35th, 38th minute) scored in each half for Germany, while Jaspreet Kaur (12th minute) accounted for India's goal.
Germany plays New Zealand in the title round on Saturday.
The Kiwis beat Australia 3-1 in another league match.
India take on Australia in the third-fourth place classification match on Saturday.
