Lack of international matches and two recent losses to Thailand have hit India hard. Bob Houghton's side plunged 22 places and now occupy the 160th spot in the latest FIFA rankings.
India lost 47 points since last month's rankings.
It is now only two places above western neighbours Pakistan (162) and below all other South Asian countries -- Maldives (143), Bangladesh (145), Sri Lanka (148) and Nepal (156).
India, who were 24th among Asian nations last month, now occupy 33rd place.
The latest ranking is just five places better than India's all-time lowest -- 165th in March 2007.
But Houghton, who was at the helm then, on the basis of India's Nehru Cup triumph, soon saw the team move up the rankings.
Australia leads the Asian pack at 24th, followed by Japan (30) and South Korea (44).
In the overall list, World champions Spain continue their reign at the top, followed by the Netherlands, Germany, Brazil, Argentina, England, Uruguay, Portugal, Egypt and Chile.