India’s ranking in the Forbes’ list of the ‘Best
Countries for Business’ dropped to 93 this year while Denmark topped the list followed
by Hong Kong, New Zealand, Ireland and Sweden.
The US lags behind many other developed nations when
it comes to its business climate, and the gap is growing, Forbes said. The US
ranks 18th in the Forbes list, down four spots from last year.
It marks the fifth straight year of declines since
2009, when the US ranked second. India ranks 93rd, with Forbes saying that while the
country is developing into an open-market economy, “traces of its past autarkic
policies” still remain.
“The outlook for India’s long-term growth is
moderately positive due to a young population and corresponding low dependency
ratio, healthy savings and investment rates, and increasing integration into
the global economy,” it said.
Investors’ perceptions of India improved in early
2014, due to a reduction of the current account deficit and expectations of
post-election economic reform, resulting in a surge of inbound capital flows
and stabilization of the rupee, it said.
Forbes determined the ‘Best Countries for Business’
by grading 146 nations on 11 different factors of property rights, innovation,
taxes, technology, corruption, freedom (personal, trade and monetary), red
tape, investor protection and stock market performance.
India ranked 122 on the trade freedom index, 135 in
monetary freedom, 120 in technology, 122 in tax burden and 128 in red tape. It
however fared well on the market performance index, ranking third, and 7th on
investor protection. It ranked 78th on the corruption parameter and 55 on
property rights.
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