However all three Pakistani schools in Dubai were found to be unsatisfactory, the DSIB said in a statement.
Inspectors said these schools needed to invest "significant amounts of time, resources and expertise to improve the education for these students".
The Dubai Schools Inspection Bureau (DSIB) said of the 21 Indian schools inspected, two are now rated as outstanding for the first time, seven are good; 10 are acceptable; and two are unsatisfactory.
Jameela Al Muhairi, chief of DSIB, said:
“We were delighted to give two Indian schools our outstanding rating, and believe that we can all learn from the steps these schools have taken over the past three years to improve.
"In our other categories, the progress in schools has slowed down a little, and we are saddened by the situation in the Pakistani schools.
“Unsatisfactory schools will be taken out of the regular inspection cycle and will be visited every three months. We will give them our full support to help them improve. However, we know from our high-performing schools that partnership is at the heart of making progress."
The results mean that 35,428 Indian pupils (58.5 percent) now attend Good or Outstanding schools in Dubai.
Among the key subjects taught, inspectors found that attainment in Islamic Education had improved “significantly”.
Inspectors, however, found that much needs to be done to improve understanding of children with special educational needs.