"We put up a gritty display in the final, but there were some errors in our circle and that caused the 4-0 scoreline," Sardar said after the medal ceremony.
"Australia are among the toughest opponents one can take on in contemporary hockey, but we have had a successful tournament," said Sardar.
"We came here with a team comprising several young players with an eye on the future," said the Indian captain, reflecting on this outing.
Coach Roelant Oltmans had decided to include junior players from the core group in this squad with his focus on picking the squad for the Olympic Games.
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Despite putting up a gritty performance, India were outplayed in the second half when the reigning world champions scored three goals by catching the Indian defence on the wrong foot.
"We need to sort out the minor mistakes that lead to goals being conceded," said the Indian skipper.
Thomas Craig and Matt Ghodes scored two goals each in open field play as Australia overwhelmed India after a stout defence denied them a good crack at the goal in the first quarter.
The triumph clinched Australia their ninth title in the Sultan Azlan Shah Cup. For India, this was the second time they finished with the silver medal in seven final appearances.