India 97th on Forbes best countries for business list

INVEScounlicForbes magazine’s annual ranking of the best countries for business has placed India at 97th, 3 places below China.

Topped by Denmark, European countries represent two-thirds of the top 25 and the US again slides to No.22 continuing a 6-year descent since 2009 when it ranked 2nd overall.

Forbes said India is developing into an open-market economy, yet traces of its past policies remain. India’s growth in 2014 fell to a decade low but rising macroeconomic imbalances and improving economic conditions in Western countries led investors to move capital away from India, prompting a sharp depreciation of the rupee. However, investors perceptions of India improved 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 stabilisation of the rupee.

The outlook for India’s growth is moderately positive due to a young population and corresponding low dependency ratio, health savings, and increasing integration into the global economy. However, India has many challenges to fully address, including poverty, corruption, violence and discrimination against women and girls.