Global Competitiveness - India Climbs Three Notches


Ajit Kumar AJIT KUMARWISDOM IAS, New Delhi.

India’s global competitiveness rank rose three notches to 41 from a year ago due to significant improvement in exchange rate stability, fiscal deficit management and efforts to tackle corruption and red tape, according to a survey released in May 2016 by the Switzerland-based IMD World Competitiveness Centre (WCC).

China at 25 was the highest ranked BRICS country in the 2016 IMD World Competitiveness Yearbook, even though it slipped from 22 in 2015 followed by India, which improved to 41 from 44, Russia 44 from 45, South Africa 52 from 53 and Brazil 57 from 56 out of 61 countries surveyed.

The IMD measures how well countries manage all their resources and competencies to facilitate long-term value creation. The overall ranking reflects more than 340 criteria, approximately two-thirds of which are based on statistical indicators and one-third on an exclusive IMD survey of more than 5 400 international executives.

The four principal factors are economic performance, government efficiency, business efficiency and infrastructure. The 2016 rankings show that 28 countries improved their standing relative to 2015, 23 slipped, while ten remained the same.

Higher consumer price inflation, lower public spending on education, tax revenue collection and merchandise exports proved to be the biggest drags on the country’s economic competitiveness, according to the IMD WCC.

The biggest challenges for the economy in 2016 would be sustaining its high growth rate, increasing the share of research and development in the economy and implementation of the Goods and Services Tax Regime. Infrastructure development and disbursing public benefits digitally would also be keenly watched, according to the IMD WCC.

The U.S. is ranked third this year yielding the numero uno position to China Hong Kong followed by Switzerland.

China Hong Kong fosters innovation through a low and simple taxation and imposes no restrictions on capital flows while offering a gateway for foreign direct investment into mainland China — which incidentally dropped three places to 25th rank in 2016.

The common pattern among all of the countries in the top 20 is their focus on business-friendly regulation, physical and intangible infrastructure and inclusive institutions.

The rankings are based on analysis of over 340 criteria derived from four principal factors: economic performance, government efficiency, business efficiency and infrastructure. Responses from an in-depth survey of more than 5,400 business executives asked to assess the situation in their own countries are also factored in.
 



Tuesday, 31st May 2016, 07:54:37 AM

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