India's 3-0 win over Sri Lanka enabled them to move up from their pre-series tally of 119 points to 121 points.
They have leapfrogged England, New Zealand and the Windies to move from fifth to second position in a list led by Pakistan with 124 points.
India captain Virat Kohli lost his pole position in the latest ICC T20 Rankings as his absence due to personal commitments led to loss of 48 ranking points.
Kohli, who was at the top with 824 points previously now, has 776 points.
As players lose two percent of their rating points for each T20I missed.
Kohli is now behind Australia's Aaron Finch (784) and West Indies opener Evin Lewis (780).
Indian batsmen Lokesh Rahul and Rohit Sharma have made substantial gains in the Twenty20 International (T20I) rankings following India's 3-0 series win over Sri Lanka.
Rahul has gained 23 slots to reach the fourth position among batsmen after scoring 154 runs, including two half-centuries, during the series.
While Rohit climbed six rungs to reach 14th position. He scored 162 runs during the series, which included a knock of 118 in the second match in Indore.
Among the bowlers, Indian leg-spinner Yuzvendra Chahal's eight wickets in the series have helped him move up 14 slots to reach 16th position.
Jasprit Bumrah not playing the final T20 International saw him slip to third place behind Pakistan spinner Imad Wasim and Afghanistan's Rashid Khan.
While Hardik Pandya (up 40 places to joint-39th) and Kuldeep Yadav (up 48 places to 64) have also moved northwards after taking six wickets each.
For Sri Lanka, Kusal Perera has moved up eight places to take the 30th slot in the batsmen's list after aggregating 100 runs in the series.
Former Sri Lanka skipper Upul Tharanga has gained 36 slots to reach 105th position after his total of 81 runs.
Sri Lanka captain Thisara Perera has gained two places to reach the 70th position among the bowlers.