India has moved down 10 places to rank 68th on an
Annual global competitiveness index, largely due to improvements witnessed by
several other economies, while Singapore has replaced the US as the world's
most competitive economy.
followed by Brazil said to be worst performing BRICS nations
India, which was ranked 58th in the annual Global
Competitiveness Index compiled by Geneva-based World Economic Forum (WEF), is
among the worst-performing BRICS nations along with Brazil (ranked even lower
than India at 71st this year).
Announcing its latest index, the WEF said on
Wednesday, 9 Oct, India ranks high in terms of macroeconomic stability and
market size, while its financial sector is relatively deep and stable despite
the high delinquency rate, which contributes to weakening the soundness of its
in 15th place in corporate governance but Second in shareholders
India is also ranked high at 15th place in terms
of corporate governance, while it is ranked second globally for shareholder
governance, the WEF study showed.
In terms of the market size, India is ranked
third, while it has got the same rank for renewable energy regulation.
innovation India ahead of most emerging economies
Besides, India also punches above its development
status when it comes to innovation, which is well ahead of most emerging
economies and on par with several advanced economies, the report said.
But, these positive metrics contrast with major
shortcomings in some of the basic enablers of competitiveness in case of India,
the WEF said, while flagging limited ICT (information, communications and
technology) adoption, poor health conditions and low healthy life expectancy.
healthy life expectancy, 109 out 141, significantly below the South Asian average
The WEF said the healthy life expectancy, where
India has been ranked 109th out of total the 141 countries surveyed for the
index, is one of the shortest outside Africa and significantly below the South
Besides, India needs to grow its skills base,
while its product market efficiency is undermined by a lack of trade openness
and the labour market is characterised by a lack of worker rights' protections,
insufficiently developed active labour market policies and critically low
participation of women.
female workers ratio to male workers, 0.26, very low at 128
With a ratio of female workers to male workers of
0.26, India has been ranked very low at 128th place. India is also ranked low
at 118th in terms of meritocracy and incentivisation and at 107th place for
In the overall ranking, India is followed by some
of its neighbours including Sri Lanka at 84th place, Bangladesh at 105th, Nepal
at 108th and Pakistan at 110th place.
The WEF said the drop of 10 places in India's
position to 68th place may look dramatic, but the decline in the country's
competitiveness score is relatively small.
A number of similarly-placed economies including
Colombia, South Africa and Turkey improved over the past year and hence have
overtaken India. The study highlighted that the global economy is unprepared
for a major slowdown.
ranks competitiveness landscape of 141 economies thru 103 indicators into 12
The Global Competitiveness Index (GCI), which was
launched in 1979, maps the competitiveness landscape of 141 economies through
103 indicators organised into 12 pillars.
Singapore has become the world's most competitive
economy in 2019, pushing the US to second place.
Hong Kong SAR is ranked 3rd, Netherlands is 4th
and Switzerland is ranked 5th. Klaus Schwab, founder and executive chairman of
WEF, said, "The Global Competitiveness Index 4.0 provides a compass for
thriving in the new economy where innovation becomes the key factor of
with emphasis on infra etc more successful than those focusing traditional
factors of growth
"The report shows that those countries which
integrate into their economic policies an emphasis on infrastructure, skills,
research and development and support those left behind are more successful
compared to those that focus only on traditional factors of growth."
The report showed that several economies with
strong innovation capability like Korea, Japan and France, or increasing
capability, like China, India and Brazil, must improve their talent base and
the functioning of their labour markets.
The presence of many competitive countries in
Asia-Pacific makes this region the most competitive in the world, followed
closely by Europe and North America.
China is ranked 28th (the highest-ranked among
the BRICS) while Vietnam is the most improved country in the region this year
at 67th place.
The WEF said 10 years on from the global
financial crisis, the global economy remains locked in a cycle of low or flat
productivity growth despite the injection of more than USD 10 trillion by
"While these unprecedented measures were
successful in averting a deeper recession, they are not enough on their own to
catalyse the allocation of resources towards productivity-enhancing investments
in the private and public sectors."
"As monetary policies begin to run out of
steam, it is crucial for economies to rely on fiscal policy and public
incentives to boost research and development, enhance the skills base of the
current and future workforce, develop new infrastructure and integrate new
technologies, among other measures," it added.