The Global Competitiveness Report 2016-17 released by the World Economic Forum shows India has made the biggest leap among all countries of the world this year. India is placed at the 39th position, which is 16 notches above the last year’s rank. Incidentally, in 2015-16 also India had jumped 16 positions in the Global Competitiveness Index.
While Switzerland has topped the list for the record eighth time, it is closely followed by Singapore and the US. With a score of 4.52, India is also the second-most competitive among BRICS nations behind China, which is ranked 28th. Switzerland’s score is 5.81.
Much of the change in India’s competitive outlook has been possible because of Prime Minister Narendra Modi reform measures to make India a leading global destination for investment. In the report, a graph comparing 10 years of competitiveness in India shows the country’s competitiveness index remained in the negative for most of the years between 2008-2014, during the Congress-led UPA government. While the index touched above zero points during 2010-11 and 2012-13, it slumped again in the negative in the following years till 2014.
In the last two years of PM Modi’s rule, India’s has jumped a whopping 32 places in the competitiveness index.
According to the report, India’s competitiveness has improved in several areas including goods market efficiency, business sophistication, and innovation. The report notes: “Indian economy has stabilized and now boasts the highest growth among G20 countries because of improved monetary and fiscal policies, as well as lower oil prices.”
Commenting on India’s ranking in the competitiveness index, Amitabh Kant, CEO, Niti Aayog, today tweeted, “Radically improving in all areas of growth: India improves in Global Competitiveness Index.”
The global ranking is based on the Global Competitiveness Index (GCI) which is prepared from country-level data covering 12 aspects including institutions, infrastructure, macroeconomic environment, health and primary education, financial market development, technological readiness, market size, business sophistication and innovation.
