Moving up one step in the global rankings of 'nation brands', India stands at the seventh position as its brand value rose 32 percent to $2.1billion.

The world's largest economy the US retains its top position with a brand value of $19.7bn. China, Germany, UK, Japan and France stand at second to sixth positions respectively.

India and France moved up one step higher while other top-five nations retained their previous positions. 

India's gain of 32 percent in nation brand value is the highest jump among other top-20 nation brands in the latest rankings.

Despite the drop of one percent in brand value, China has retained its second position with a brand value of $6.3bn. 

Brand Finance has listed 20 world's top 'nation brands' in its annual report. Brand Finance said it ranks 100 leading nations by their brand value and strength.

For ranking the nations, Brand Finance has adopted a methodology based on royalty relief mechanism to ascertain the valuation of the world's largest companies.

The world's largest economy has not only retained its number one position but also remained as a major attraction for business investments.

However, the huge economic scale of operations has contributed the most in building nation brand value. The US is also the world's top destination for higher education.

Brand Finance's latest report further said: "The soft power arising from its dominance of the music and entertainment industries are significant contributors too. This soft power will help the US retain the most valuable nation brand for some time after China's seemingly imminent rise to become the world's biggest economy."

In terms of tourism and aviation sectors, the Middle East region is faring very well. International transportation hubs with modern and large airports are making Dubai, Abu Dhabi, Qatar favorable destinations, the report said. 

The report highlights that "there is no doubt that Dubai, Abu Dhabi and increasingly Doha have vast appeal for investors, highly skilled expatriate workers and tourists from Europe, Asia and the Middle East."

India is the sole nation among BRICS (Brazil, Russia, India, China and South Africa) nations to improve brand value.

Brazil, Russia, China and South Africa recorded a drop in their brand valuations. Among the emerging economies, India is the second largest after China and followed by Brazil, Russia and South Africa.

Brand Finance considers forecasts for five years on all the major brands in every country. The gross domestic product (GDP) will also be used as a proxy for calculating total revenues.

India's latest campaign 'Incredible India' has been successful in building the brand image on the global platform. The latest episode of Volkswagen has deteriorated German's image and brand value.