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Britain, gold medallists in 1988, scored two early goals to seal India's fate and win the six-team competition in Chile, which also featured the hosts, Austria, Russia and Mexico.
Ashley Jackson set up the first for Barry Middleton in the fourth minute and Richard Mantell flicked in the second in the 10th.
Forward Prabhjot Singh had two efforts blocked in quick succession as India, who won their last gold in 1980, tried to claw their way back and VR Raghunath then fired over from a rebound.
India, also beaten 3-2 by the same opponents in the round- robin stage, were unable to find a way through in the second half despite winning a flurry of penalty corners.
"We have been waiting for this for eight months," said Britain captain Ben Hawes.
It's ...a massive accomplishment for the team. After Thursday, when they played very well, we were aware we had to start quickly.
"The game opened up after the early goal and we weren't as nervous after that. We stayed very physical in the tackle, our technical game has improved a lot and we created chances."
China, Netherlands, South Korea, Canada, South Africa, Spain, Belarus, Pakistan and Australia qualified directly for the Beijing Games.
India missed out on an automatic berth after they failed to reach the 2006 Asian Games final.
New Zealand beat Argentina in the final of the first qualifying tournament last month. The third is in Japan in April.

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NOW WE KNOW WHY CRICKET IS LIKED MORE THEN THE HOCKEY, BECAUSE THE CRICKETERS HAVE WON MANY PRESTIGIOUS TOURNAMENTS.WHERE AS THE HOCKEY PLAYERS HAVE EVEN FAILED TO BEAT PAKISTAN ON MOST OCCASIONS AND THIS IS NOT A SURPRISE LONG LIVE CRICKET
why you fail to enter in olympic games...please recognize your mistake .Since it's our National game we have to fought till the end.hope we do it in future.dont compare with you in cricket .Since cricket is a game 11fouls are playing and 25000 fools are watching -A quote from a great writer
What a shame......... Founders of the game fail to qualify.....
SHAME !!! SHAME !!!! to the Team, IHF, Sports Ministry
how shameliss is that gill. how does he still show his face, one guy is corrupting the whole structure for so long and nothing is done. the scene requires a complete upheaval. its high time the hockey should be put into hands of managers rather than money minters...the association should recruit ppl who deliver and the top echeleon should be humble knowledgeable and at least not a megalomaniac , money-glutton, regionalist shameless GIll.
shit players n shit coach i wish they compare with cricket well tell them plz better do next time
Nothing can be more disheartening than this news.We need to have a break,revamp the present set upand KPS Gill to be shown the door because he himself will never resign.We need to build up a new team with new blood.It will take time but start now.
Shame on loosing out of the qualifiers, even worse, its our national game! KPS GILL should retire and stop being dalmiya for IHF!autonomy doesnt work when your scouting for talent from a diverse country such as India!
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