According to Grant Thornton's Global Dynamism Index (GDI), India was ranked 40th among 50 economies, which were analysed on 22 indicators of dynamism.

They were done across five categories: business operating environment, economics & growth, science & technology, labour & human capital and financing environment. The GDI Index defines dynamism as the changes to the economy which have enabled recovery from the 2008-09 economic recession and are likely to lead to a fast rate of future growth.

Singapore has emerged as the most dynamic economy in the world, followed by Finland in the list, Sweden was ranked third, Israel (fourth), Austria (fifth), Australia (sixth), Switzerland (seventh), Korea (eighth), Germany (ninth) and United States (10th).

However, in terms of economics and growth, India was ranked as high as fifth, behind Argentina, China, Uruguay and Chile.

"Despite recent signs of a slowdown, emerging markets look set to dictate the pace at which the global economy will expand, at least in the medium term.

"Considering the magnitude of economic growth and development in the recent years, the strength of India's economy has become increasingly important to the health of the global economy," Grant Thornton in India National Managing Partner Vishesh Chandiok said.

In terms of other parameters, India fared badly. Out of 50 countries, India was ranked 46 for its business operating environment and sits at number 43 when it comes to financing environment.

In terms of labour and human capital, India emerged as the 33rd best economy in the world, while in terms of science and technology, it was placed 37th on this measure of dynamism.

The GDI Index model was developed by the Economist Intelligence Unit (EIU).

Chandiok added: "The recent reformatory measures taken by the Indian government – opening up of FDI in the organised retail, aviation and broadcast sectors; and announcement of new Manufacturing Policy being the major ones – are expected to shore up the momentum of growth in the near term...".