Achhe din is here! India 39th most competitive economy in the world

On the index, India has a score of 4.52 while that of Switzerland is 5.81

India has climbed 16 places to the 39th rank on the Global Competitiveness Index prepared by the World Economic Forum as improved business sophistication and goods market efficiency pushed its ranking higher.

IMAGE: Workers hang a Swiss flag on the parliament building in Bern, Switzerland. Photograph: Ruben Sprich/Reuters

For the eighth straight time, the list is topped by Switzerland as the most competitive economy. Singapore and the US are at the second and third positions, respectively.

The jump of 16 places for India from last year's 55th place is the highest for any economy this year. India is also the second-most competitive among BRICS nations behind neighbouring China, which is ranked at the 28th position.

IMAGE: People look at the skyline of the central business district from the Skybridge of The Pinnacles at Duxton public housing estate in Singapore. Photograph: Edgar Su/Reuters

On the index, India has a score of 4.52 while that of Switzerland is 5.81.

At the fourth spot is the Netherlands, followed by Germany (5), Sweden (6) and the UK (7), Japan (8), Hong Kong SAR (9) and Finland (10).

India's "competitiveness has improved across the board, in particular in goods market efficiency, business sophistication, and innovation".

"Thanks to improved monetary and fiscal policies as well as lower oil prices, the Indian economy has stabilised and now boasts of the highest growth among G20 countries," according to WEF's Global Competitiveness Report 2016–17.

IMAGE: Tulips bloom alongside a windmill in the Garden of Europe in Lisse, the Netherlands. Photograph: Yves Herman/Reuters

While recent reforms efforts have concentrated on improving public institutions, opening the economy to foreign investors and international trade and increasing transparency in the financial system, WEF said, "still, a lot needs to be done".

IMAGE: The Reichstag building, seat of German parliament Bundestag in Berlin. Photograph: Pawel Kopczynsk/Reuters

Further, the report noted that India is "still long way" from having in place all the competitiveness elements to realise its potential as a major global economy.

IMAGE: The Stockholm Cathedral is seen in Gamla Stan or the Old Town district of Stockholm, Sweden. Photograph: Bob Strong/Reuters

The labour market is still bound by rigid regulations and centralised wage determination while infrastructure also remains a bottleneck, it added.

IMAGE: A London bus on route 159 over Westminster Bridge in London. Photograph: Kieran Doherty/Reuters

The rankings are based on the Global Competitiveness Index (GCI), which is based on country-level data covering 12 categories. These include institutions, infrastructure, macroeconomic environment, health and primary education, financial market development, technological readiness, market size, business sophistication and innovation.

IMAGE: A remote island in southern Japan is home to 22 people and more than 120 cats. Photograph: Thomas Peter/Reuters

This year, 138 economies have been assessed for their competitiveness while there were 140 economies in the 2015-16 rankings.

Globally, WEF said the degree to which economies are open to international trade in goods and service has been declining for 10 years and this could hurt prosperity in future.

IMAGE: Highrise residential and commercial buildings in Hong Kong. Photograph: Bobby Yip/Reuters

IMAGE: The Nokia headquarters in Espoo, Finland. Photograph: Antti Aimo-Koivisto/Lehtikuva/Reuters

"Declining openness in the global economy is harming competitiveness and making it harder for leaders to drive sustainable, inclusive growth," WEF founder and executive chairman Klaus Schwab said.