Here's where India ranks in World Economic Forum's Global Competitiveness Report!
The GCI combines 114 indicators that capture ideas and concepts that matter for productivity. These indicators are grouped into three sub-indices and further into 12 pillars of competitiveness. The three sub-indices are basic requirements subindex, efficiency enhancers subindex and innovation and sophistication factors subindex. The basic requirements subindex comprises of four pillars namely- institutions,
The report also classifies economies into five stages of development primarily by taking
The rankings on the global competitiveness Index showcase some interesting trends. This year's Index ranks 140 economies. Switzerland retains the top rank followed by Singapore. The top ten slots are occupied by the same countries that were the top ten countries in 2014-15 GCR. Among the top ten only four countries are outside of Europe. These include Singapore (ranked 2nd), US (ranked 3rd), Japan (ranked 6th) and Hong Kong SAR (ranked 7th).
Among the BRIC's, Brazil is down to 75th from the previous years rank of 57 largely due to its weak performance on the macroeconomic front as well as its 'corruption scandals'. Russia is up eight places to 45 from 53 primarily due to change in estimates of GDP at PPP by IMF as well as improvements in 'regulatory business environment and domestic competition'. India is up 16 places to 55 after five years of continual decline. The report attributes this to 'the momentum initiated by the election of
Another crucial point that is mentioned in the report is that the total factor productivity (TFP) has grown by close to 1.4 percent in India in the decade 2005-14 as compared to the previous decade from 1995-2004. It is in stark contrast to what most other economies have witnessed in the same time frame. Almost all of the major economies have seen a decline in TFP barring China, which has seen a growth of close to 0.25 percent over the commensurate period.
Overall the report comes across, as having rich insights in areas countries should work on to improving their productivity and long-term prosperity. The policymakers are advised to take note and work towards improving their competitiveness in the years to come.
(The article is co-authored with Sankalp Sharma, Senior Researcher at the Institute for Competitiveness, India. Amit Kapoor is Chair, Institute for Competitiveness & Editor of Thinkers. The views expressed are personal. Amit can be reached at firstname.lastname@example.org and tweets @kautiliya)