India rose 16 places to 39 on the 2016-17 Global Competitive Index, the biggest jump among all 138 countries surveyed by the World Economic Forum. The report, which was released on Wednesday, showed that India fared well in goods market efficiency, business sophistication and innovation.

The WEF report said India’s government had made several moves that have helped improved its ranking, including developing public institutions, allowing more foreign investments and making the financial system more transparent. However, the report said India must improve labour market conditions, and its bulky financial and utilities markets, which are largely composed of inefficient public enterprises.

India is the only South Asian country in the top 50% of the ranking list. However, it lags behind on “technological readiness”. The report said the Centre’s Digital India project could help improve this.