India's rank slipped to 40, down four places, in World Economic Forum's Financial Development Report that rates 62 leading financial systems and capital market for the breadth, depth, and efficiency.

The report said that the country has poor institutional and business environment, which results in an inability to enforce contracts. A low degree of financial sector liberalisation, inadequate infrastructure, and a high cost of doing business too were responsible for the lower ranking.

India is ranked behind its Asia peers Korea Republic (ranked 15), Malaysia (ranked 18), China (ranked 23), and Thailand (ranked 34). Even the other BRIC countries fared better with Brazil ranked 32 and Russian Federation ranked 39.

Although the country's policies and institutions are quite weak, India did experience a slight improvement in the financial stability, the report said.

Out of the 15 Asia Pacific countries, India is ranked ninth.

The report rated the countries based on seven parameters - institutional environment, business environment, financial stability, banking financial services, non-banking financial services, financial markets, and financial access.

India Rankings

Overall: 40

Institutional environment: 56

Business environment: 55

Financial stability: 46

Banking financial services: 45

Non-banking financial services: 9

Financial markets: 28

Financial access: 45

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Hong Kong SAR Rankings

Overall: 1

Institutional environment: 9

Business environment: 2

Financial stability: 8

Banking financial services: 1

Non-banking financial services: 10

Financial markets: 4

Financial access: 4

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United States Rankings

Overall: 2

Institutional environment: 13

Business environment: 13

Financial stability: 38

Banking financial services: 21

Non-banking financial services: 1

Financial markets: 1

Financial access: 5

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United Kingdom Rankings

Overall: 3

Institutional environment: 2

Business environment: 8

Financial stability: 43

Banking financial services: 2

Non-banking financial services: 3

Financial markets: 2

Financial access: 12

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Singapore Rankings

Overall: 4

Institutional environment: 1

Business environment: 1

Financial stability: 3

Banking financial services: 10

Non-banking financial services: 12

Financial markets: 3

Financial access: 14

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Australia Rankings

Overall: 5

Institutional environment: 18

Business environment: 12

Financial stability: 9

Banking financial services: 7

Non-banking financial services: 5

Financial markets: 8

Financial access: 6

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Canada Rankings

Overall: 6

Institutional environment: 6

Business environment: 9

Financial stability: 13

Banking financial services: 13

Non-banking financial services: 7

Financial markets: 10

Financial access: 2

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Japan Rankings

Overall: 7

Institutional environment: 15

Business environment: 19

Financial stability: 19

Banking financial services: 3

Non-banking financial services: 6

Financial markets: 5

Financial access: 27

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Switzerland Rankings

Overall: 8

Institutional environment: 12

Business environment: 6

Financial stability: 2

Banking financial services: 16

Non-banking financial services: 15

Financial markets: 7

Financial access: 24

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Netherlands Rankings

Overall: 9

Institutional environment: 7

Business environment: 7

Financial stability: 16

Banking financial services: 4

Non-banking financial services: 13

Financial markets: 17

Financial access: 13

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Sweden Rankings

Overall: 10

Institutional environment: 4

Business environment: 10

Financial stability: 25

Banking financial services: 8

Non-banking financial services: 32

Financial markets: 15

Financial access: 1

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Germany Rankings

Overall: 11

Institutional environment: 10

Business environment: 11

Financial stability: 18

Banking financial services: 12

Non-banking financial services: 16

Financial markets: 13

Financial access: 16

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Denmark Rankings

Overall: 12

Institutional environment: 8

Business environment: 3

Financial stability: 21

Banking financial services: 25

Non-banking financial services: 27

Financial markets: 12

Financial access: 9

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Norway Rankings

Overall: 13

Institutional environment: 3

Business environment: 5

Financial stability: 6

Banking financial services: 6

Non-banking financial services: 25

Financial markets: 26

Financial access: 17

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France Rankings

Overall: 14

Institutional environment: 17

Business environment:  22

Financial stability: 42

Banking financial services: 19

Non-banking financial services: 17

Financial markets: 11

Financial access: 11

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Korea Republic Rankings

Overall: 15

Institutional environment: 34

Business environment: 15

Financial stability: 44

Banking financial services: 20

Non-banking financial services: 2

Financial markets: 14

Financial access: 22

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Belgium Rankings

Overall: 16

Institutional environment: 14

Business environment: 21

Financial stability: 27

Banking financial services: 15

Non-banking financial services: 35

Financial markets: 19

Financial access: 3

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Finland Rankings

Overall: 17

Institutional environment: 5

Business environment: 4

Financial stability: 22

Banking financial services: 22

Non-banking financial services: 49

Financial markets: 31

Financial access: 8

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Malaysia Rankings

Overall: 18

Institutional environment: 21

Business environment: 25

Financial stability: 10

Banking financial services: 11

Non-banking financial services: 14

Financial markets: 24

Financial access: 28

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Spain Rankings

Overall: 19

Institutional environment: 24

Business environment: 28

Financial stability: 55

Banking financial services: 5

Non-banking financial services: 18

Financial markets: 9

Financial access: 20

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Ireland Rankings

Overall: 20

Institutional environment: 11

Business environment: 14

Financial stability: 53

Banking financial services: 14

Non-banking financial services: 19

Financial markets: 23

Financial access: 18