Hosts Nepal sealed a semi-final slot by defeating defending champions India 2-1 at the Dasarath Stadium yesterday.
The win saw Nepal finish top of Group A.
For Nepal, who were cheered by a vociferous home crowd, Anil Gurung and Jumanu Rai scored in the 70th and 81st minutes while Syed Rahim Nabi pulled one back for India in stoppage time.
India also qualified for the semi-finals, though Pakistan also claimed four points, on the basis of having beaten Pakistan in their encounter. Nepal had seven points, while last placed Bangladesh had one point.