India Jumps to Third Spot in Business Environment Rankings

New Delhi: India has emerged as the third most improving country in terms of its business environment, according to a report by The Economist Intelligence Unit (EIU). This improvement is attributed to strides made in areas such as foreign direct investment policy, foreign trade, exchange controls, and the tax regime.

The EIU's 2024 ranking assesses countries over a period of five years each - the previous year and the next. India, followed by Greece and Argentina, features prominently as places that are expected to see significant policy improvements or growth in market opportunities.

According to the report, Indian business environment is poised for substantial improvement, driven by measures such as policy reforms, infrastructure investment, and growth in market opportunities. Moreover, improvements are also predicted in areas like per capita GDP growth, investment spending, and foreign direct investment.

Singapore leads the top ten economies with the best business environment over the next five years, followed closely by Denmark and the US. However, it's worth noting that these top-performing countries' growth rates are likely to be fairly stable but slow.

Prime Minister Narendra Modi has made a pledge to upgrade India into an developed nation within the next 25 years, backed by substantial investments in infrastructure development. The government is actively working towards key reforms such as cutting red tape and offering incentives for local manufacturing.