China was ranked at a low 47th position in the Business Competitiveness Index.

China's rank in the Global Competitiveness Index is 46, 10 spots ahead of India.

The BCI is a complement to the medium-term, macroeconomic approach of the Growth Competitiveness Index.

It evaluates the underlying microeconomic conditions defining the current sustainable level of productivity in each of the countries covered, the underlying concept being that, while macro-economic and institutional factors are critical for national competitiveness, these are necessary but not sufficient factors for creating wealth. Wealth is actually created at the microeconomic level by the companies operating in each economy.

The BCI evaluates two specific areas, critical to the business environment in each country: the sophistication of the operating practices and strategies of companies, and the quality of the microeconomic business environment in which a nation's companies compete.

The idea is that, without these microeconomic capabilities, macroeconomic and institutional reforms will not bear full fruit.

Also see: The Tata Legacy