The Indians lost the last-four stage match of the clay court tournament 6-7(3) 7-6(7) 11-13 in little over two hours.
The two pairs broke each other twice in the first set to push the issue to a tie breaker in which the Swiss-German team prevailed.
The Indians clawed their way back in the match by winning the second set which was also stretched to a tie-breaker as the two pairs held their serves throughout.
The Indians yet again put up a good fight but lost the closely fought match tie-break. Divij and Raja won a total of 84 points to 92 of their opponents.