News Highlights
The Institute for Management Development released its annual World Competitiveness Index (IMD).
World Competitiveness Index
- Compiled by: Institute for Management (IMD)
- Published By: World Competitiveness Yearbook (WCY)
- The WCY , first published in 1989, is a comprehensive annual report and worldwide reference point on the competitiveness of countries.
- It analyzes and ranks countries according to how they manage their competencies to achieve long-term value creation
- Factors for Measuring Competitiveness
- Major 4 Factors and Each factor is divided into 5 sub-factor
World Competitiveness Index 2022
- The Yearbook provides extensive coverage of 63 economies
- Both Russia and Ukraine were not assessed in this year’s edition due to the limited reliability of data collected.
Global Performance
- Top Global Performers
- Denmark(1), Switzerland(2), Singapore(3), Sweden(4), HongKong(5)
- Top Performing Asian Economies
- Singapore (3rd), Hong Kong (5th), Taiwan (7th), China (17th) and Australia (19th).
India’s Performance
- Overall Ranking: 37th among 63 Economies
- In Comparison to Asian Economies:
- India has witnessed the sharpest rise among the Asian economies, with a six-position jump from 43rd to 37th rank
- Improvement in Economic Performance:
- After a stable but stagnant five years, 2022 witnessed significant improvement in the competitiveness of the Indian economy, largely due to gains in economic performance (from 37th to 28th).
- India’s Ranking in Four Parameters
- Economic Performance: 28 (Earlier37)
- Government Efficiency : 45th(Ealier 46th)
- Business Efficiency: 23rd (Earlier 32)
- Infrastructructure: 49th (Earlier 49)
- Improvised Rankings in other key Sub Factors
- The domestic economy has experienced a stratospheric rise from 30th to 9th position in a year
- The labor market, a key sub-factor in the business efficiency parameter, moved up from 15th to 6th
- Management practices and business attitudes and values also made major leaps.
- Top five attractive factors of India’s economy for business
- A skilled workforce
- Cost competitiveness
- Dynamism of the economy
- High educational level
- Open and positive attitudes.
- Challenges faced by India
- Managing Trade disruptions and Energy security.
- Maintaining high GDP growth post COVID.
- Skill development and employment generation.
- Strategic disinvestment and asset monetization.
- Resource mobilization for infrastructure development.
- Steps taken by India to increase its competitiveness
- Government made major improvements in the context of retrospective taxes in 2021, India appears to have restored the trust of the business community.
- Its re-regulation of a number of sectors, including drones, space and geo-spatial mapping, also likely played a role in the country’s stellar performance in the 2022 WCR,”
- India is also a driving force in the global movement to fight climate change
- India’s pledge of net-zero by 2070 at the COP26 summit in November 2021, sits in harmony with its strength in environment-related technologies in the ranking.
Analysis on World Competitiveness
- Major Global challenges impacting global business in 2022
- Inflationary pressures (50 per cent)
- Geopolitical conflicts (49 per cent)
- Supply chain bottlenecks (48 per cent)
- Other global challenges affecting the competitiveness of countries
- Variants of COVID-19 with respect to the number of infected people around the world
- Differing national policies to address COVID (the ‘zero-tolerance COVID’ policy versus the ‘moving on from COVID’ policy)
- The invasion of Ukraine by Russia
Content Source: The Indian Express