Trade Articles

India has been placed among the group of top fifty countries on the World Economic Forum's(WEF) Financial Development Index. Inspite of their monetary structure is ravaging their economic structure, the list has been topped by the USA followed by the Switzerland, Denmark and Sweden. “While India delivered solid results in terms of its financial markets particularly foreign exchange and derivatives, its banks appear hamstrung by lack of size, low efficiency and poor information disclosure", the financial development report has candidly added that in spite of the fact that how lacunae the banking system is, it is still stable due to its capital buffers. The financial marketplace have given the solid outcome in the India. This year, over 12,000 business leaders were polled in 134 global economies. The WEF has cleared out that "The survey is designed to capture factors affecting an economy's business climate".

China has been ranked no.1 among the BRIC economies followed by India. Brazil and Russia have been stood at the 64th and 51th ranks respectively. The increasing exports have boosted the inflow of capital in the economy which in turns have bolstered the depth ness in the financial markets. In economics, the term 'BRIC' connotes with those economies which have been recognized fastest- Brazil, Russia, India and China. The report says that "Emerging markets such as China and India that have been primary drivers of global economic growth in the new millennium have yet to see the extent to which 'decoupling' truly exists and if their economic expansion can continue independent of the financial trauma plaguing the US and other developed countries ". Figuring out that the Indian business atmosphere is showing considerable room for the India's development, it further adds that "India receives low marks related to the liberalization of its domestic financial sector and capital account". The USA has outstripped the other nations in the list of top 10 countries-Singapore at 5th, Finland at 6th, Germany at 7th, Netherlands at 8th, Japan at 9th with Canada at 10th position.

Detailing the economic structure of top nations, the report stated that, the collective strength of financial intermediaries and markets in these countries, spanning banks, investment banks, insurance companies, equity markets, and by issues and judicial reform remain lingering areas for improvement in the US, while the cost of doing business is also the area of concern. However, its institutional and business atmosphere have shown the less marks in the sectors like that of the domestic financial sector- liberalization and infrastructure. The financial development index studies the financial environment in 134 economies. The rankings are calculated on the basis of more than 120 variables, spinning around the institutional and business atmosphere, financial firmness, depth ness of capital markets along with the other factors for accessing the various economies on the monetary scale. The report has stated out the interesting fact, which the Index has shown out, is the degree by which the industrial sector feels they will be allowed an easy access of the capital.