India ranks 141st out of 162 in this year's Global Peace Index (GPI), released Tuesday.
Despite an increase in military expenditure, India made positive gains in its level of peace after reductions in deaths from internal conflict and the level of perceived criminality in society.
Globally, a dramatic rise in the number of homicides and more countries, 59, increasing their military expenditure as a percentage of GDP were the key drivers in making the world a less peaceful place, according to the 2013 GPI.
This year's findings underline a 6-year trend showing a deterioration of 5 percent in global peace.
In this time, 110 countries have seen their score deteriorate while only 48 became more peaceful.
The economic impact of this 5 percent loss in peace came at a cost to the global economy of $473 billion last year, or the equivalent to almost four times Official Development Assistance (ODAs) in 2012.
The sharp increase in the number of homicides - up 8 percent over the last year - can be almost entirely attributed to Latin America and Sub-Saharan Africa.
Steve Killelea, Institute for Economics and Peace (IEP) founder and executive chairman, said: "The migration of populations to urban areas in developing countries has been a key driver in the rise of homicides worldwide.
"This has also led to an increase in violent crime. It is essential for police to gain the trust of those living in city slums, to achieve this, addressing police corruption would be a first important step."
The GPI is the world's leading measure of global peacefulness produced by the Institute for Economics and Peace.
It gauges ongoing domestic and international conflict, safety and security in society, and militarisation in 162 countries by taking into account 22 separate indicators.
IEP is an international think tank dedicated to shifting the world's focus to peace as a positive, achievable, and tangible measure of human well-being and progress.