India slips 10 notches in competitiveness index
Nation ranks 68th in the Global Competitiveness Index this year
NEW DELHI: India has slipped 10 notches to the 68th position in the Global Competitiveness Index (GCI) this year because of a “relatively small” decline in score and the “progress made by several countries”, according to the World Economic Forum’s (WEF’S) report on the index released on Wednesday.
The index, launched in 1979, ranks competitiveness of 141 economies—accounting for 99% of the world’s gross domestic product—through 103 indicators under 12 parameters.
The report said India ranks high in terms of macroeconomic stability, particularly in inflation management and market size. It has also found India’s financial sector as “relatively deep and stable” despite a relatively high delinquency rate that contributes to weakening the soundness of the country’s banking system.
Singapore has emerged as the most competitive economy of the world, pushing the US to second place. Hong Kong SAR is ranked third.
India bagged the 15th position in corporate governance, 23rd in financing of small and medium enterprises, 22nd in venture capital availability and second in shareholder governance, it said.
“India performs well when it comes to innovation, well ahead of most emerging economies and on a par with several advanced economies,” the report said.
The report also pointed out certain “major shortcomings” in some of the basic enablers of competitiveness. India ranked 124th in terms of security and 138th with regard to the incidence of Market Financial size system Macroeconomic Infrastructure stability terrorism. “ICT adoption (rank 120) is limited but has improved sharply,” the report said.
“India achieves mixed results on the various aspects of governance. Transport and electricity infrastructures have improved significantly over the past two years, although from a low base,” the report added.
The report expresses concerns over health issues, where India is in the 110th position. According to the report, “health conditions remain poor, as reflected in low healthy life expectancy, which is one of the shortest outside Africa and significantly below the South Asian average”.
The report said India needs to work towards skill development Health Institutions
Business dynamism Innovation capability Labour market
and labour issues. “India must also grow its skills base. Product market efficiency is undermined by a lack of trade openness and the labour market is characterized by a lack of worker rights’ protections, insufficiently developed active labour market policies and critically low participation of women.”
The report finds India as the second worst performing country among the BRICS (Brazil, Russia, India, China and South Africa). “Among the BRICS, China is by far the best performer, ahead of the Russian Federation, 32 places ahead of South Africa and some 40 places ahead of both India and Brazil (71st rank),” it said.
In South Asia, India, at 68th position, loses ground in the rankings despite a relatively stable score, mostly due to faster improvements of several countries previously ranked lower. “It is followed by Sri Lanka (the most improved country in the region at 84th), Bangladesh (105th), Nepal (108th) and Pakistan (110th),” it said. Skills Product market ICT adoption
SINGAPORE EMERGED AS THE MOST COMPETITIVE ECONOMY OF THE WORLD, PUSHING THE US TO SECOND PLACE
The report finds that, a decade on from the global financial crisis, most economies are still stuck in a cycle of low productivity growth. The global economy is illprepared for a downturn after a lost decade for productivity-enhancing measures.
“Those countries that integrate into their economic policies an emphasis on infrastructure, skills, research and development, and support those left behind, are more successful compared to those which focus only on traditional factors of growth,” WEF founder and executive chairman Klaus Schwab said.
The Congress criticised the government’s management of the economy for India’s fall in the rankings.
“Another negative news on economic front…india is moved down 10 places in 1 year on global competitive index, mainly due to low skill development, lack of trade openness, worker rights’ protection and low participation of women in labour force,” party leader Ashok Gehlot tweeted.