With a drop in positions on education (89), health (95), entrepreneurship and opportunity (93), and also social capital front (105), India has slipped to 88th rank on Global Prosperity ranking.

While last year India stood on position 78, it slipped by 10 positions this year. China is ranked 58th in the list of 110 countries, which is topped by Norway. Other countries in the top five are Denmark (2), Finland (3), Australia (4) and New Zealand (5).

The prosperity index is based on 89 variables over 110 countries, grouped into eight sub-indices, and claims to comprehensively rank the level of prosperity in 110 nations of the world.

It is compiled by London-based Legatum Institute and takes into account both economic growth and citizens' quality of life, drawing on data from various sources, including the Gallup World Poll 2009 and UN development Report.

The prosperity index reveals India’s extreme poor healthcare system which fails to cater the needs of needy. Also the weak entrepreneurial infrastructure, a poorly developed education system and low level of social setup adds to the worries.

Economy (44th) and governance (41st) are two measures on which India ranks comparatively better.

According to the Institute, both scores are high as a result of high levels of public optimism with three-quarters of Indian citizens approving the government and also have high confidence on the country's financial institutions.

China ranks 30 places higher than India in the overall global rankings and outperforms India on the economy sub-index, where the Asia's second largest economy spots at 24th position.

Meanwhile, on the lower end of the rankings were Zimbabwe (110), Pakistan (109), Central African Republic (108), Ethiopia (107) and Nigeria (106).

The Prosperity Index presents a broad view of wealth, happiness and prospects of the world's nations and citizens captured in eight sub-indexes.

The slip in rank is a bad sign for a growing economy like India.