The hard-serving 21-year-old from Thornhill, Ont., defeated top-seeded Janko Tipsarevic of Serbia 6-7 (4), 7-6 (4), 7-6 (4) in the final of the Chennai Open on Sunday for his second career ATP World Tour victory.
Serbia's Novak Djokovic remained in top spot, well ahead of Spain's Rafael Nadal and Roger Federer of Switzerland.
The top three also remained the same on the women's rankings list. Caroline Wozniacki of Denmark was No. 1, followed by Petra Kvitova of the Czech Republic and Victoria Azarenka of Belarus.
Rebecca Marino of Vancouver rose one spot to No. 63.
In men's doubles, Toronto's Daniel Nestor and Belarusian partner Max Mirnyi were tied for third behind American twins Bob and Mike Bryan. Nestor and Mirnyi were victorious at the Brisbane International over the weekend.
Raonic, who peaked at No. 25 in the rankings during his breakthrough season last year, won all 48 of his service games last week. He became the first player to win a tournament without dropping serve since Federer did it at the 2008 grass-court event in Halle.
Raonic is 2-1 in ATP World Tour finals, claiming his first title in San Jose last February. He followed that up a week later by reaching the final in Memphis before losing to American Andy Roddick.
Raonic started last season at No. 156 in the rankings and went on to win the ATP Newcomer of the Year award.
He will next play in an exhibition event in Kooyong, Australia, as a tuneup ahead of this month's Australian Open in Melbourne. Raonic will be the No. 23 seed in the men's singles draw.