"This dramatic reversal is largely attributable to the momentum initiated by the election of Narendra Modi, whose pro-business, pro-growth, and anti-corruption stance has improved the business community's sentiment toward the government.
"The quality of India's institutions is judged more favourably (60th, up 10), although business leaders still consider corruption to be the biggest obstacle to doing business in the country," the WEF said.
India's performance in the macroeconomic stability pillar has improved, although the situation remains worrisome (91st, up 10). Thanks to lower commodity prices, inflation eased to 6 per cent in 2014, down from near double-digit levels the previous year.The government budget deficit has gradually dropped since its 2008 peak, although it still amounted to 7 per cent of GDP in 2014, one of the world's highest (131st).
Infrastructure has improved (81st, up six) but remains a major growth bottleneck, particularly electricity, the report said. (SH)
India has somersaulted 16 positions to rank 55th on a global index of the world's most competitive economies, where Switzerland remains on top.#
Fibre2Fashion News Desk – India