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PV Sindhu created history by becoming the first Indian badminton player to win a silver medal at the Asian Games.
The Olympic silver medallist - who on Monday became the first Indian to reach an Asian Games singles final - lost 21-13 21-16 to Taiwanese world number one Tai Tzu Ying in Jakarta.
It comes just days after Sindhu, 23, was named seventh on the Forbes list of highest-earning female athletes.
Sindhu has now lost seven of her last eight major international finals.
On Monday, Sindhu's compatriot Saina Nehwal won bronze to become the first Indian to win an individual badminton medal at the Asian Games in 36 years.
In 1982, Syed Modi won men's singles bronze at the Games in New Delhi.
The Forbes list found Sindhu's on-court winnings last year totalled $500,000 (£387,000) but endorsements saw her bring in an extra $8m (£6.2m) in sponsorship.
Vikas Pandey, BBC News, Delhi
Sindhu was carrying the hopes of millions of Indians who desperately wanted her to win. It has been a welcome change to see cricket-crazy Indians glued to TV sets in shops and malls to watch badminton.
One can arguably say that she has become as big a star as cricketers like Virat Kohli and MS Dhoni. And that is no small achievement because cricket is considered a religion in India and other sports find it hard to win popular support and sponsors.
But Sindhu has changed the perception. People recognise her because she routinely appears on advertising billboards and TV commercials.
Today's result may have disappointed people, but there is no doubt that she will continue to be a star in India.
And that is likely to inspire children to pick up a badminton racquet to become next PV Sindhu.
