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India has seen its ranking drop two places to 7th, its lowest rank since 2001.

In a long-awaited decision reached in late 2012, the Indian government permitted partial foreign ownership of supermarkets and department stores. However, no foreign companies moved to enter the market, daunted by complex requirements, until late 2013.

In 2013, the Indian government raised limits on foreign direct investment in telecommunications, asset reconstruction, credit information, aviation and defense production. Foreign investment in oil refining and single-brand retail, currently capped at 49 percent, will now be granted automatic approval.

This June 25 2003 file photo shows a fountain surrounded by pathways leading to the Taj Mahal in Agra, India. [Photo/IC]

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