Wednesday, 24 July 2013

India's Ranking in Global Competitiveness Index 2012-2013

Recently i read a report "The Global Competitiveness Report 2012-2013", which is published by World Economic Forum in which it gives details about the impact of competitiveness on the economic factors and  factors relating to level of productivity .

What is Competitiveness?

"Competitiveness is a set of institutions, policies and factors that determine the level of productivity of a country."

(Source:The Global competitiveness report 2012-2013)

The report has identified twelve factors under which the global competitiveness index is based upon and the report clearly explains how these factors influence the economic condition of the country.

The factors are:-
  1. Institutions
  2. Infrastructure
  3. Macroeconomic environment
  4. Health and primary education
  5. Higher education and training
  6. Goods market efficiency
  7. Labour market efficiency
  8. Financial market efficiency
  9. Technological readiness
  10. Market size
  11. Business sophistication.
  12. Innovation.
When we take Indian context, the facts are given below:-

  • India ranks 59th out of 144 countries.
  • India is in last position with respect to BRICS countries.
  • India is behind Thailand, Indonesia, Republic of Korea, China, Japan in Asian Countries.
Some of the findings that they have reported with respect to Indian context is:
  • India lacks in basic infrastructure and in technological aspects.
  • No proper transport system and energy infrastructure.
  • Indian is in 101th rank in health care and in education.
  • India is in 99th position in Macroeconomic environment and 106th in politics.
  • India has a well sophisticated financial markets and regulations.
My understandings from this report is:-
  • India has to develop infrastructure in both transport and in energy this can be done by PPP model.
  • India has to improve quality of the education and should totally revamp it's existing model and this can be achieved by utilizing present day technology.
  • India has to improve in health care.


1 comment:

  1. Venkat,

    l give what is the index value for India and some of the other large economies like US, Japan, China, etc.. Thanks.