According to information received here, Deepika proved to be no match for her US opponent Miranda Leek, who shot the X-ring twice en route to an easy 6-2 victory in the recurve individual section.
The 20-year-old US Olympian then upset third seed Yuanyuan Cui of China 6-5 in a nerve-wracking battle to make the final.
India will now hope to open their account in the team and mixed events lined up later in the day.
Seeded seventh, Deepika was the sole Indian to have advanced to the quarterfinal stage of the competition after notching up easy wins against Regina Maria Romero of Guatemala 6-0 and Denmark's Carina Christiansen 6-4.
But eighth seeded Laishram Bombayla Devi bowed out of the event after going down to eventual finalist Inna Stepanova of Russia 6-2 in the pre-quarterfinals.
In the men's recurve section, Atanu Das and Tarundeep Rai also faltered in the pre-quarterfinals.
While Rai lost to former world number one Brady Ellison of the US, Das went down against Jianping Zhang of China.