World Economic Forum has placed India at a low 103 rank on Global Human Capital Index.
In the list complied by Geneva-based WEF, India was at 105th place last year. India is lower than Sri Lanka and Nepal but higher than Bangladesh and Pakistan.
Australia is at number 20.
"India is held back by a number of factors, including low educational attainment (primary education attainment among 25 -54 year olds is 110th for example) and low deployment of its human capital, meaning the skills available are not getting put to good use", WEF said, noting that the country looks to be moving in the right direction despite a number of challenges.
The top 10 countries in the list are: Norway, Finland, Switzerland, United States, Denmark, Germany, New Zealand, Sweden, Slovenia and Austria.
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