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Mohammad Ali Qamar's hopes of making it to the Athens Olympics were dashed after he was narrowly beaten by Toshiyuki Iqarashi of Japan in a first round bout in the Asian qualifying tournament in Karachi in Friday.
The 24-year-old Indian, a gold medallist at the 2002 Commonwealth Games in Manchester, lost 101-109 in the light flyweight category.
"I am shattered. I came to Karachi with high hopes of qualifying for the Olympics, which is a dream for every sportsman," said a disappointed Qamar.
India have already won two Olympic places from the first two Asian qualifying events in the Philippines and China.
Around 150 Asian boxers from 32 countries are vying for the final 18 places in the Athens Olympics boxing competition, which will have 62 Asian boxers in all.