Here’s some more good news for Indian economy watchers. We can take pride in the fact that India has been ranked No. 3 in the world as far as intangible assets are concerned. An article in the Economic Times says that India emerges head and shoulders above all developed countries and blocs, barring the US and Switzerland.

In today’s knowledge-driven global marketplace, intangible assets such as intellectual property, brand, customer relationship and talent hold much more value than tangible ‘visible’ assets such as capital, land, building, factories et al.

India is No.3 economy in the world with the highest intangible component as a percentage of the total enterprise value (TEV), value of disclosed and undisclosed tangible and intangible assets.

With an estimated intangible assets component of 74% (as proportion of TEV), India is just behind US (75%) and Switzerland (74%), according to Global Intangible Tracker 2007 (GIT), the most extensive global study ever on intangibles assets by the London-based Brand Finance Institute.

The GIT study assumes significance in the wake of changes in the accounting practices, which means that the valuation of intangible assets is now a boardroom issue and cannot be ignored.

With a large portion of our economy being primarily based on intellectual capabilities, the challenge for the future will be our ability to deliver top quality services and solutions across different points in the value chain.