The country has slipped two positions to sixth to tie with Germany, the survey by research firm Ipsos said.
Norway, Saudi Arabia, Sweden, China and Canada held the top five positions in that order.
India's economic confidence dropped by 4 points to 62 per cent in June compared to the preceding month.
"Depreciating rupee and subdued performance of corporate sector dragged down India's economic confidence," Ipsos India CEO Mick Gordon said.
"The recent slowdown in growth can primarily be attributed to domestic supply bottlenecks, policy uncertainty, project delays, poor investor confidence and low external demand. Thankfully moderating inflation has provided some succor to the stressed economy," he added.
Of late, the Indian currency has been consistently hitting new record lows and it slumped to a life-time low of 61.21 (intra-day)
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