India has taken the joint second spot with Hong Kong in Grant Thornton International Super Growth Index 2006, with more than a third of its companies (34 per cent) achieving super growth status.
The US has topped the list for the second year with 39 per cent of its companies having achieved super growth status.
Super growth companies are those that have grown considerably more than the average, measured against key indicators like turnover and employment.
The Index is part of the Grant Thornton International Business Owners Survey which covers more than 7, 000 business owners in 30 countries.
"The US continues to perform relatively well, reflecting the inherent dynamism of its economy which saw buoyant consumer demand, strong capital investment and robust export growth.
"But the real story is the continuing rise of Indian and Hong Kong companies, as their economies boom and productivities continue to surge. With current trends, there is every chance that we may see a change in the top ranking next year," said Andrew Godfrey, a partner in Grant Thornton.
The US, which topped the Index for the second year in succession, however, saw its proportion of super growth companies decline from 48 per cent in 2005.
India improved considerably in the Index, rising from its sixth position last year and 21 per cent super growth companies. Hong Kong maintained its second position increasing the proportion of super growth companies from 28 per cent in 2005.
Commenting on India's leap, International Business at Grant Thornton India Partner Vishesh Chandiok said, "It is clearly an indication of the significant potential for growth in this country, as well as a confirmation of India's abundant entrepreneurial talent."
Following India and Hong Kong are Sweden (31 per cent), the top ranked country in the first-ever Super Growth Index in 2004 and ranked tenth last year, Ireland (26 per cent), the United Kingdom (23 per cent) and Canada (23 per cent).
Italy, Russia and Turkey jointly shared the bottom position in the Super Growth Index.
Italy's rank, the survey said, appeared to reflect the sustained malaise affecting the economy with weak consumer demand, falling investment and shrinking industrial output.
Mainland China, which was included in the Index for the first time this year, bagged the 14th position, with 14 per cent of its companies classified as super growth.
Mainland China joined Germany (15 per cent) and Japan (15 per cent) in the mid-table.
This year the survey established that super growth companies are not only 23 per cent more likely to export than ordinary companies, but also likely to face lesser financial constraints for business expansion.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
