According to the World Economic Forum’s Global Competitiveness Report, India has moved up 16 positions to rank 55th on a global index of the world’s most competitive economies. Globally, Switzerland has retained its top position as the world’s most competitive economy for seventh year in a row and is followed by Singapore, the US, Germany and the Netherlands in the top-five.
These are followed by Japan, Hong Kong, Finland, Sweden and the UK in the top-ten. Among emerging economies, India has ended five years of decline with a 16-place jump to 55th position. However, South Africa is ranked higher and it has re-entered the top 50, progressing seven places to 49th. The study assesses 140 countries on the basis of factors driving their productivity and prosperity.
WEF said that the most problematic factors for doing business in India include corruption, policy instability, inflation and access to finance. The areas where India ranks better were
- Investor protection
- Gross national savings
- Quality of education system
- Venture capital availability
- Hiring and firing practices
- GDP and domestic market size
- Public trust in politicians
- Burden of government regulation
Elsewhere, macroeconomic instability and loss of trust in public institutions has dragged down Turkey (51st), as well as Brazil (75th), which posted one of the largest falls. China, holding steady at 28, remains by far the most competitive among large emerging economies.
India’s Rank in Categories
- Competitiveness of its institutions – Rank 60
- Infrastructure – Rank 81
- Macroeconomic environment – Rank 91
- Budget deficits – Rank 131
- Quality of its electricity supply – Rank 91
- Technology readiness of its businesses – Rank 120
The report states that the latest index finds a close link between competitiveness and an economy’s ability to nurture, attract, leverage and support talent. After five years of decline, India has jumped 16 ranks to 55th place.
