Calcutta: Indias defeats in the first two Tests in Australia means they are all set to lose the second place in the ICC Test rankings to South Africa.
The best Mahendra Singh Dhonis side can now achieve is a 2-2 draw, which wont be enough to keep them in the second place.
If the series in Australia ends in a draw, then India and South Africa will be locked at 117 ratings points. But the Proteas will be ranked ahead of India when the ratings are calculated beyond the decimal point, according to an ICC statement released on Sunday.
If Australia wins 3-0, they will move to 110 ratings points, two behind India, while a 3-1 series win will mean India will drop to 113 ratings points while Australia will rise to 108 ratings points.
However, if Australia make a clean sweep of the series, then both sides will be locked at 111 ratings points, but India will still be ranked above Australia by a fraction of a point.
England continues to be at the No. 1 spot.
Meanwhile, Sachin Tendulkar has dropped two places to sixth position and Rahul Dravid has slipped four spots to 15th position in the batsmens list.
VVS Laxman has dropped one place to 18th spot, while Virender Sehwag has fallen out of the top 20, in 22nd position.
But Australia captain Michael Clarke has rocketed his way into the top-10 for the first time in 15 months after his career-best unbeaten triple century in Sydney.
Clarke scored 329 runs and jumped 12 places to eighth position. The skipper has also become his sides highest-ranked batsman after leapfrogging Michael Hussey.
Teams: 1. England, 2. India, 3. South Africa, 4. Australia, 5. Pakistan, 6. Sri Lanka, 7. West Indies, 8. New Zealand, 9. Bangladesh
Batsmen: 1. Kumar Sangakkara, 2. Jacques Kallis, 3. Alastair Cook, 4. Ian Bell, 5. AB de Villiers, 6. Sachin Tendulkar, 7. Younis Khan, 8. Michael Clarke, 9. Jonathan Trott, 10. Thilan Samaraweera
Bowlers: 1. Dale Steyn, 2. James Anderson, 3. Graeme Swann, 4. Stuart Broad, 5. Zaheer Khan, 6. Morne Morkel, 7. Peter Siddle, 8. Shakib-al Hasan, 9. Rangana Herath, 10. Daniel Vettori
All-rounders: 1. Shakib-al Hasan, 2. Jacques Kallis, 3. Daniel Vettori, 4. Stuart Broad, 5. Shane Watson