World Economic Forum’s global competitiveness rankings
The fact that India has slipped 6 places in the World Economic Forum’s global competitiveness* rankings has been all over the news. The global competitiveness survey takes into account 12 parameters which are Institutions, Infrastructure, Macroeconomic Stability, Health and Primary Education, Higher Education and Training, Goods Market Efficiency, Labor Market Efficiency, Financial Market Sophistication, Technological Readiness, Market Size, Business Sophistication and Innovation. A total of 131 countries were polled.
Looking at it positively, we are still ahead of some of the BRIC nations like Brazil which is at 72 this year (Brazil slipped in it’s rankings by six places), and Russia, which is at 58, but it has stepped up one place since last year. China has beaten us, like last year. It improved it’s ranking from 35 to 34. But at 34 China’s score is 4.57 and India’s isn’t too far behind at 4.33 so I guess we aren’t that far behind.🙂
Even better news is that India has scored better than China in World Economic Forum’s Business Competitiveness Index. This is a more detailed study of business competitiveness. Here India is ranked 31 and China 57.
India’s huge market has driven up the score as India’s rank on market size is 3! India is at 26 for for innovation and business sophistication, and it doesn’t rank too badly on financial market sophistication either – 37. But India ranks poorly on health and primary education (101) and ofcourse, labour market efficiency (96).
The problem is that while we are improving on various ‘business’ indicators we are not doing so on our ‘social’ ones. Education and health are still way down on the list of government priorities. I am sure the government realises that we cannot take a leap forward unless we progress on all fronts…but it’s frustrating that despite these sectors literally screaming for more the government isn’t doing enough.
Interestingly, world rankings in the top 10 have hardly changed, and most of those who were in the top ten last year are still there. The list goes thus: US, Switzerland, Denmark, Sweden, Germany, Finland, , Japan and the UK. Japan has slipped by three places, but and Singapore both jumped five places. A significant change has happened to , as it’s position slipped from 2 to 9. The reasons given for this are “macroeconomic imbalances, an increasingly complex and burdensome tax system, weak productivity, and a sub-standard transport infrastructure.”
*Note on Global Competitiveness Report: It has evolved over the last three decades and is an annual survey conducted by the World Economic Foum together with leading research institutes and business organizations. 11,000 business leaders in 131 countries were surveyed in this latest research. The final scores are not just calculated from the Executive Opinion Survey but also from publicly available data.
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