The number of countries Indian passport holders can enter without a prior visa has fallen to 55, from 57.
This is because two countries have discontinued their visa-on-arrival for Indians - Bolivia and Iran.
Iran said it is discontinuing the facility, as many Indians were kidnapped for ransom or offered employment after landing in Iran, taking advantage of the facility.
Bolivia suspended the facility after replacing the visa-on-arrival with an e-visa procedure for Indian passport holders.
Though the Indian passport has risen from 85 to 80 on the Henley Passport Index this year, the changes have reduced the number of countries Indians can visit visa-free.