The list has been topped for the second year in a row by Denmark, while India has moved down from its 64th position in Forbes' annual list, which ranks 127 nations on the basis of business climate in a country for entrepreneurs, investors and workers.

The US has moved up two position to be ranked second on the list. Besides, Canada and Singapore have moved up four spots each to number three and four respectively. Other countries in the top 10 this year include New Zealand, UK, Sweden, Australia, Hong Kong and Norway.

Three countries -- New Zealand, Australia and Norway -- are new to the top-ten this year, while three others -- Finland, Ireland and Switzerland -- have fallen out of this league.

"Sliding the most this year was Ireland (No. 14, down 12), which even saw plans for a Guinness mega-brewery shelved by parent Diageo as exports slowed," Forbes said, adding Uruguay, Armenia, Paraguay and Latvia also moved down considerably.

China has moved ahead of India to 63rd position in this year's list, up from its 79th spot last year, primarily due to improvements in areas like innovation and investor protection.

The Communist nation has been ranked at top position across the world in terms of investor protection, although it is ranked among the lowest at 122nd in terms of personal freedom.

About India, the report said the country declined on the rankings on four metrics -- trade freedom, technology, corporate tax rate and corruption.

In terms of trade freedom, India was ranked among the lowest at 125th position, while it was down to 118th on corporate tax rate front. In technology and corruption, the country slipped to 64th and 71st positions respectively.

Besides, India is ranked at the 107th spot in terms of monetary freedom, 90th on red tape basis and 54th on personal freedom front. The rankings are, however, better at 30th each on the basis of investor protection and innovation and 44th on intellectual property rights.