India has slipped three spots to 40th position on the latest Global Competitiveness Index released by the...
Digital Desk: India has slipped three spots to 40th position on the latest Global Competitiveness Index released by the International Institute for Management Development (IMD), a report said. While this is a decline from last year, it is an improvement from the 43rd position secured in 2019–2021.
The IMD's World Competitiveness Centre (WCC) report praised India's progress in government efficiency while highlighting the country's lag in business efficiency, infrastructure, and economic performance. The key factors that contributed to India's ranking were exchange rate stability, compensation levels, and advancements in pollution control.
The report also outlined certain issues that India is projected to encounter in 2023. These include maintaining high GDP growth, managing financial market volatility, controlling inflation and the fiscal deficit, driving digital transformation, and mobilizing resources for infrastructure development.
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Global Competitiveness Snapshot
Denmark, Ireland, and Switzerland grabbed the top three rankings out of the 64 economies ranked in the annual report. The top ten countries were the Netherlands, Taiwan, Hong Kong, Sweden, the United States, and the United Arab Emirates.
Notably, Ireland jumped from 11th to second position in this year's rankings. This can be attributed to its great performance in the economic domain, where it climbed from seventh to first position. A competent workforce, high educational attainment, legislative stability, predictability, a competitive tax structure, and a business-friendly environment all contributed to Ireland's growth.
Singapore, on the other hand, fell to the fourth spot from the third position. It was placed fifth in 2021 after topping the rankings in 2019 and 2020. The report attributed the decline to certain features of government efficiency, such as competition legislation and the responsiveness of government policies. Nonetheless, Singapore performed well in other areas, ranking second in employment, fourth in international investment, and sixth in productivity and efficiency.
Denmark retained its top position by continuously outperforming all evaluated competitiveness parameters, excelling in corporate efficiency and infrastructure while improving in government efficiency. Switzerland ranked in third place, exhibiting outstanding performance across all competitiveness parameters, particularly government efficiency and infrastructure. However, it witnessed a minor decrease in business efficiency while improving its economic performance.
The report stated that economies that delayed reopening during the Covid-19 outbreak were starting to improve their competitiveness. Thus, Thailand, Indonesia, and Malaysia advanced in the rankings, whereas early-opening economies such as Sweden and Finland endured setbacks.
The European Union as a whole performed well in the rating, with five economies placing in the top ten. Five economies from the European region made it into the top 10 in the ranking, demonstrating the region's strong performance overall. Professor Arturo Bris, Director of the WCC said that the ranking provides significant insights for analyzing diverse business environments, assisting international investment decisions, and assessing the quality of life in each country.
The report also noted that the most competitive countries at the top of the list had unique approaches to achieving competitiveness, frequently utilizing market access and trading alliances. Moreover, highly competitive economies have institutions that are strong and efficient. WCC Chief Economist Christos Cabolis stated that resilient economies such as Ireland, Iceland, Bahrain, the UAE, Saudi Arabia, Qatar, and Singapore have excelled in establishing resilience and changing policies based on current economic situations.
The IMD World Competitiveness Yearbook (WCY), published for the first time in 1989, is a comprehensive annual report that serves as a global reference point for a country's competitiveness. The ranking is based on a thorough investigation that included economic literature, global, national, and regional sources, as well as feedback from business leaders, government agencies, and academics.
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