India, who currently have 142 points, were helped by their 1-0 World Cup qualifier win against Guam last year, making a leap of six places.
The Stephen Constantine-managed side climbed three more spots to 163rd after winning the South Asian Football Federation (SAFF) Championship beating Afghanistan 2-1 in the final last month.
Iran (44) is the highest ranked Asian nation while SAFF Cup runners-up Afghanistan have gained three places to be placed in the 151st position.
World champions Germany are in the fourth spot which is being led at the top by Belgium, followed by second placed and World Cup runners up Argentina, while Spain hold the third place.
Portugal is in the seventh position followed by Columbia in eighth, England in ninth and Austria in tenth spot.