India ranked third in global list of countries with improving business environment

The Economic Intelligence Agency has released its report on the top 10 business destinations in the world. The report measures the attractiveness of the business environment in 82 countries and territories, using 91 indicators across 11 different categories.

While advanced and stable geographies top the business environment rankings, they tend to show stable and slower growth. Therefore, to understand which countries are best placed to deliver acceleration in per-capita GDP and investment growth, the report compares those geographies that have improved their rankings for the next five years (2024-28) as compared to the past five years (2019-23).

According to the report, these geographies will witness the most significant policy improvements, infrastructure investment, or growth in market opportunities. India ranks third among the most improving geographies in the business environment. Further, the report states India is the “only single-country market that offers a potential scale comparable to that of China”. The improvement is based on India’s youthful demographic profile, which promises both “strong demand and good labor availability.” It is further aided by “solid economic fundamentals, digital infrastructure, and favorable demographics” along with plans of policy support to attract manufacturing interests.

Greece saw the biggest improvement in its score, mainly because of the policies of the new government, which has undertaken reforms, cut taxes, and boosted business confidence.

Qatar has the highest position (26) among all the countries in the improving business environment rankings list. Its rank can be attributed to the country's $220 billion investment program focusing on infrastructure. The program led to the expansion of the Hamad International Airport, the road network, and the tourism infrastructure.

The ranking takes into account upcoming policy changes by the government, forecasts for a rise in purchasing power and demand as well as reforms in the institutional environment. It scores the business environment in a country on a scale of 0 to 10, with 10 being the best possible score.

Let’s take a look at the top 10 geographies by business environment score:

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Singapore topped the list, followed by Denmark and the US, with a score above 8.40 out of 10. Germany, Switzerland, and Canada were other names on the list. According to the report, these countries are seen as safe bets for investment as they are fairly advanced economies.