Chasing a target of 173 runs, India could only score 167/8.
Harmanpreet Kaur was India's best batter, scoring a 34-ball 52.
Australia scored 172/4 after batting first.
Beth Mooney struck a half-century, whilst skipper Meg Lanning remained unbeaten on 49.
India vs Australia: Last Over
Now then, 16 runs in 6 balls. Here we go:
Ball 1: 2 runs.
Ball 2: 2 runs again. 12 from 4 now.
Ball 3: Just the single. 11 from 3 required.
Ball 4: WICKET! Australia are almost there. Radha Yadav departs. 11 needed from 2 now.
Ball 5: SINGLE! That's it, unless there is a freebie. Australia have done it yet again. 10 needed from the last ball.
Ball 6: FOUR, but it does not matter. Australia are into the final.
India vs Australia: Australia Win By 5 Runs
Heartbreaking, to say the absolute least. The Indian team produced a show, and it was a show worth watching. But ultimately, Australia came up trumps, as they so often do in the biggest of stages.
The game was in India's grasp, until it wasn't anymore. If only Jemimah Rodrigues left a beamer that was going for a wide, if only Harmanpreet Kaur's bat did not get stuck into the pitch, if only Richa Ghosh showed a bit of patience and stuck till the end, perhaps the result could have been different.
But cricket does not have room for 'if onlys', and Australia are not a team who let mistakes go begging. What a display this has been from Meg Lanning's team.
Jess Jonassen conceded just four runs in the penultimate over, whilst India's last over produced 18 runs. Darcie Brown conceded just a solitary run in the 16th over, while India dropped quite a few chances. Ultimately, the errors out-weighed the resilience, which was certainly in abundance, as India's campaign here in South Africa ends on an agonizing note.
India vs Australia: Advantage Australia
Ellyse Perry, at her athletic best, puts in a dive and a half to save two crucial runs for the Aussies. Credit should also be given to Jess Jonassen for the excellent penultimate over that she has bowled, which yielded just 4 runs and also a vital wicket - that of Sneh Rana. Had this been a tennis match, we would call this situation Advantage Australia.
India are 157/7, needing 16 off the last over.
India vs Australia: Rana Relieves Pressure
Brilliant from Sneh Rana! It is only because of Pooja Vastrakar's injury that she is in the team, but is she not utilising the chance in the perfect manner? The all-rounder strikes a sublime boundary off Megan Schutt's last over.
India are 153/6.