India has secured the 39th rank, climbing 16 places from last year, on the annual Global Competitiveness Index prepared by the World Economic Forum (WEF). Every year, WEF releases its Global Competitiveness Report based on their analysis of the world’s 138 economies. India has a score of 4.52 on the Index, while that of Switzerland, ranked 1st, is 5.81.
The WEF Report is based on the assessment of the world’s economies in different areas – like the soundness of banks, the sophistication of businesses, and so on.
The ranking is done according to the “12 pillars of competitiveness”, including macro-economic environment, infrastructure, health and primary education, and labour market efficiency, among others. The Index is one of the leading indices that provide insight into the drivers of a country’s productivity and prosperity.
India has shown the greatest climb by jumping up 16 places from last year’s rankings. India is also the second most competitive economy among the BRICS nations, following China, which is ranked at the 28th position.
India’s public institutions and increasing transparency in the financial system have been noted as the “stellar areas of improvement” in the report. According to the analysts of the Forum, India is the best-performing economy in South Asia, with reforms like opening the economy to international trade and foreign investors and efforts towards increasing transparency in the financial system.
“Thanks to improved monetary and fiscal policies as well as lower oil prices, the Indian economy has stabilised and now boasts of the highest growth among G20 countries,” says the WEF’s Global Competitiveness Report 2016-17.
The lack of technological readiness and the issue of NPAs (Non-performing Assets) with the banks, which hasn’t seen any solution, have been recognised as areas that need improvement.
Switzerland has topped the list as the most competitive economy for the eighth time consecutively. Singapore and USA are at the 2nd and 3rd positions, respectively.
Among India’s other neighbouring countries, Sri Lanka is ranked at the 71st position, Bhutan at the 97th, Nepal at the 98th, Bangladesh at the 106th, and Pakistan at the 122nd position.
Find the report here.