The US has slipped four ranks to land in the seventh position in the annual list of 'Best Countries' ranking, while Switzerland has taken the top spot.
The ranking was released on Tuesday by US News & World Report in partnership with University of Pennsylvania's Wharton School and Y&R's BAV Consulting.
Eighty nations were surveyed for 2017 Best Countries report and the rankings were based on a wide range of qualitative measures that can boost trade, travel and investment and even its effect on other economies.
Each country was scored by 21,000 respondents from across the globe over nine main attributes - Adventure, Citizenship, Cultural Influence, Entrepreneurship, Heritage, Movers, Open for Business, Power and Quality of Life - that most described the country.
According to the rankings, United States have dropped in a number of areas over the past year, including best country for business, citizenship, adventure tourism, education, transparency and headquartering a corporation.
Global perception of the US could also be one of the factors for the decline in the rankings.
"We wanted to capture how tumultuous political change can affect a country's perceived standing in the world," said Brian Kelly, editor and chief content officer of US News.
However, the country retained its position as number one on the list of most powerful countries followed by Russia and China.
India was ranked the 25th best country in the world with an overall score of 4.6 out of 10.
It was also ranked the 4th best country to start a business, 6th best for investment and 5th best for its heritage.