The World Economic Forum has placed India and China, hot spots in the global economy, lower in this year’s “Networked Readiness Index” survey. India slipped to 44 from 40 while China fell nine spots to 59.

The survey claimed that both countries have weak infrastructure that prevents them from maximizing IT, with India having low personal IT use and China having low business and individual IT preparedness and use.

The study states that European countries and Singapore are leveraging IT better than the U.S. Denmark, for the first time, leads the Index. It has emerged as the country that uses IT to maximize development and increase competitiveness. The U.S. fell to seventh in the rankings, after placing first in last year's study. Denmark came in third last year after starting to rise in the list in 2003.

The Danish government's use of electronic services, regulatory structure and telecommunications environment aided the country, according to the study. Conversely, the study attributed the U.S. slip to the "deterioration relative of the political and regulatory environment."
Nordic countries have had a strong showing in the World Economic Forum survey since it was first conducted in 2001, with some of those nations cracking the top 10 each year. Several factors contributed to the Nordic nations' presence in the annual survey, such as an emphasis on education, efficient governments and a willingness to use current technologies, according to the study
The 122 countries polled were measured on their business, regulatory and infrastructure environments for IT, the readiness of business, government and people to use technology and the actual use of current technologies.

The study comes after U.S. politicians and business executives recently discussed the status of the nation's innovation and competitiveness and how to improve in these areas. During separate congressional hearings, Microsoft Corp. Chairman Bill Gates and Intel Corp. Chairman Craig Barrett called for improved mathematics and science education in schools and additional government funding for research and development to maintain U.S. competitiveness in the global economy.