India drops 10 positions in Competitiveness Index Social media message baseless, policyholders' money safe: LIC

NEW DELHI: India fell 10 positions, to the 68th rank, in the World Economic Forum's (WEF) Global Competetiveness Index.

The concept of Global Competitiveness Index 4.0. 2019 is anchored in growth accounting theory, which measures the sum of growth in the factors of production — labour and capital — and of total factor productivity (TFP).

"India ranks 68th, down 10 places in 2019. The drop is only partly the consequence of a relatively small decline in score (61.4 points, -0.7 points), but also, and more significantly, the progress made by several countries ranked close to India: Colombia (62.7, +1.1 points, 57th position), Azerbaijan (58th), South Africa (60th) and Turkey (61st)," said the Global Competitiveness Report 2019.

India trails China (28th, 73.9) by 40 places and 14 points. The report showed that along with Brazil (71st), it is among the low-performing BRICS countries, although the competitiveness profiles of the two economies are quite different.

India ranks beyond 100th on five pillars and features in the top 50 of just four pillars. However, it does rank high on macroeconomic stability (43rd) and market size (3rd). Its financial sector (40th) is relatively deep and stable despite the high delinquency rate (106th), which contributes to weakening the soundness of its banking system (89th), it said. MUMBAI: Refuting claims of its weak financial position, national insurer Life Insurance Corporation (LIC) on Wednesday assured its millions of policyholders that their money is safe and secure as its "financial health is sound.'

The clarification came after messages on social media claimed that the Corporation is in heavy losses, raising concerns over the safety of money of tens of millions of policyholders.

"We refute such false rumours and we would like to assure our policyholders about its sound financial health and urges them not to take cognizance of such misleading news," LIC said in a statement.

The insurer said the news on social media are factually incorrect, uncorroborated and intend to tarnish its image and also create panic in the minds of the policyholders.

Messages also wrongly speculate about LIC'S financial health and attempt to portray the largest life insurer in poor light in the eyes of its stakeholders, it said. During 2018-19, LIC had declared the highest-ever bonus amounting to Rs 50,000 crore and upwards to its policyholders.

As of August 31, the insurer's market share, in terms of number of policies is 72.84 percent and in terms of first year premium it is 73.06 percent, the statement said.

LIC'S market share in first year premium has grown from 66.24 percent in March 2019 to 73.06 percent in August 2019, the Corporation said.

The social media messages came in after media reports said LIC has take a severe beating in his marker play to the tune of tens of thousands of crore in market value as most of the companies it has invested are trading much below its investment value.

Being the largest financial institution, LIC is also the largest investor in the equities and debt market valued at trillions of rupees. A MOU for the construction of Road Over Bridges was inked between DFCCIL (Government of Uttar Pradesh) and Indian Railway Zones namely North Central Railway (13 ROBS), Northern Railway (8 ROBS) and East Central Railway (8 ROBS) on October 3. Anshuman Sharma, Director/pp DFCCIL; Girijesh Kumar Tyagi, Special Secretary PWD, Government of UP and various zones of Indian Railways represented by N K Jha Chief Engineer/rsw/ecr; Narendra Singh CBE/NCR and V P Singh CBE/NR were the signatories