Schoeman, who earned his first Springbok Sevens colours in 2001, will return home this weekend after a clash of heads in Wednesday night's warm-up match against the Arabian Gulf at the Dubai College left him with a fractured eye socket.
He joins the long list of first choice SA Sevens players who are unavailable for the Games due to injury.
The South African squad is due to fly to Delhi from Dubai on Friday morning.
Paul Treu, the Springbok Sevens coach, described the loss of Schoeman as another big setback, but added he was pleased with the overall preparation of his team.
The 12-man squad wrapped up their training in Dubai on Thursday, where they had been staying to help them acclimatise to the high humidity factor in Delhi.
"The humidity here in the desert is actually much higher than in Delhi, so I'm confident that the team will adjust much quicker to the Indian climate," Treu said.
"We are all positive, in a good frame of mind and very eager to get to Delhi so that we can slot into the Games' unique multi-sport environment."
The Springbok Sevens will play their first match of the Games against Tonga on October 11, followed by fixtures against India and Wales on the same day.