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RP Singh took four wickets to help India defeat South Africa by 37 runs in the ICC World Twenty20 Super Eight decider in Durban.
After the Indians posted 153 for five, the Proteas were left chasing 126 to oust New Zealand from a semi-finals berth, but some brilliant bowling from RP Singh, who took an impressive 4-13, restricted them to just 116 for nine.
Earlier Mahendra Dhoni had won the toss and opted to bat but India got off to a slow start after they lost Virender Sehwag (11), Gautam Gambhir (19) and Dinesh Karthik (0) in the space of four balls.
India - who were without six-hitting hero Yuvraj Singh due to an elbow injury - recovered to reach 57 for three after 10 overs, but Robin Uthappa (15) soon fell to Morne Morkel.
However Dhoni (45) and Rohit Sharma (50 not out) then put on 85 to help their side recover before the skipper was run out in the final over as India finished on 153 for five.
The Proteas were dealt a huge blow when they lost openers Herschelle Gibbs and Graeme Smith cheaply to Singh in only the second over of their reply. AB de Villiers also fell for just one run to leave the hosts in real trouble at 12 for three.
Big-hitter Justin Kemp was run out after making only five and Shaun Pollock was bowled by Singh the very next ball as South Africa limped to 48 for five at the half-way stage.
Mark Boucher (36) and Albie Morkel showed some resistance to put on 69 for the sixth wicket before the former played on. Vernon Philander was stumped after making two but it was the loss of Morkel, who was bowled by Singh for 36, which sealed the hosts fate.
Johan Van der Wath was stumped in the last over off Harbhajan attempting to hit a maximum as South Africa agonisingly fell 10 runs short of the 126 they required to reach the semi-finals.
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