Phogat was set to lock horns with American Sarah Hildebrandt for the gold medal but the 29-year-old fell 100 grams short despite starving herself for a week and spending hours in the sauna to cut down to her competition weight.
"Wrestling won and I lost. My dreams are shattered. I don't have any more strength," Phogat wrote on X.
"Goodbye wrestling 2001-2024. I will always be indebted to you all. I am sorry."
Cuba's Yusneylys Guzman Lopez replaced Phogat in the final where Hildebrandt won 3-0 to take the gold.