India climbs global competitiveness ladder
India rose three ranks in the global competitiveness index from 44 in 2015 to 41 in 2016. According to the Switzerland-based IMD World Competitiveness Centre, the rise can be attributed to improvement in exchange rate stability, fiscal deficit management and efforts to tackle corruption and red tape. China-Hong Kong ranked first, Switzerland second, making USA third for the first time in three years.
The International Institute for Management Development (IMD) World Competitiveness Yearbook is the leading annual report published since 1989 on the competitiveness of the nations. Performances of 62 countries are analysed on the basis of over 340 criteria, measuring different facets of competitiveness. More than 5,400 business executives are asked to evaluate the situation in their own countries and their responses help prepare the report.
While our country's overall performance and managerial practices improved, it suffered a setback due to lack of investments in health, education and environment. Tax evasion, ease of doing business and transparency were the advancements India made whereas consumer price inflation, female labour force, consumption tax rate were considered as India's declines. Government efficiency was ranked 47th, unchanged since the last three years.
India's gross domestic product grew 7.5 percent year-on-year between January and March 2016, faster than the previous quarter's 7.3 percent.
USA yielded it's position as the world's foremost competitive economy to China-Hong Kong and Switzerland. Combined with the top three, Singapore, Sweden, Denmark, Ireland, the Netherlands, Norway and Canada complete the top ten. 36th-ranked Chile was the lone Latin American nation outside the bottom 20. Asian countries like Taiwan, Malaysia, Korea Republic and Indonesia regressed from their previous positions, showcasing a distinct decline.
All the countries that have a place secured amongst the Top 20 countries of the World Competitiveness Yearbook have a resembling pattern. It's their focus on business-friendly regulation, physical and intangible infrastructure and inclusive institutions.