According to the 2010 Quality of Life Index, the rise has made India the second best place after Bhutan to live in the sub-continent.
France topped the poll, followed by Australia, Switzerland, and Germany. The US lost four positions to end at seventh.
Earlier, India was ranked as 123rd country in the world to live in 2009.
The index ranks 194 nations in nine categories which includes cost of living, culture and leisure, economy, environment, freedom, health, infrastructure, safety and risk, and climate.
India has not only improved its overall position in the tally, but has also gained around 25 points in the cost of living category.