World Competitiveness Index

India remained 43rd just on the annual World Competitiveness Index, per the World Competitiveness Yearbook (WCY).

The World Competitiveness Index is a comprehensive annual assessment that serves as a global benchmark for country competitiveness.

Global Indices and India’s Rankings represent the country’s performance on indicators that range from social to economic factors along with political indicators as well. To know about Global Indices & India’s Ranking, visit the linked article.

What is World Competitiveness Index?

WCY is maintained by the Institute for Management Development (IMD) and was first published in 1989. The IMD looked into the effects of COVID-19 upon economies all around the world in 2021. It covers 64 different economies in detail. The IMD World Competitiveness Yearbook (WCY) is a comprehensive annual report and global reference point on country competitiveness. Based on a comprehensive study, it provides benchmarks as well as patterns, and also statistics, and survey data.

It examines and assesses countries based on how effectively manage their competencies in order to create long-term value. Because businesses must deal with political, social, and cultural factors, an economy’s competitiveness cannot be limited to GDP and productivity alone. Governments must thus create an environment defined by efficient infrastructures, institutions, and policies that promote firms to create long-term value. Governments must thus create an environment defined by efficient infrastructures, institutions, and policies that promote firms to create long-term value.

The IMD World Competitiveness Rankings underscore a long-term pattern that has been noted in previous editions: the top-ranked countries each have their own way to become competitive.

Elements: It examines four components (334 competitiveness criteria) to assess a country’s prosperity and competitiveness:

  1. performance of the economy
  2. Efficiency in government
  3. Efficiency in the workplace
  4. Infrastructure

As new theories, research, and data become available, as well as even as the global economy evolves, the standards are amended and updated frequently.

Few countries with top ranking:

  • Europe- In the international competitiveness rankings, Switzerland (1st), Sweden (2nd), Denmark (3rd), and the Netherlands (4th) show regional strength (4th).
  • Asia: Singapore (5th), Hong Kong (7th), Taiwan (8th), China (8th) are the top-performing Asian economies (16th). Singapore ranked first in the World Competitiveness Index for 2020.
  • Others: The United Arab Emirates and the United States are still in the same places as last year (9th and 10th, respectively).

Also, refer to the following links:

India’s Ranking

In comparison to the other BRICS countries: India came in second (43rd) among the BRICS countries, after China (16th), and was trailed be Russia (45th), Brazil (57th), and South Africa (58th) (62nd).
Performance-based on four criteria: India’s government efficiency score improved to 46 from 50 a year ago, although its rankings in other aspects like economic performance (37th), corporate efficiency (32nd), and infrastructure (49th) stayed unchanged.

Government Efficiency Improvements: Mostly owing to reasonably stable governmental finances. Despite the challenges posed by the epidemic, the government deficit in 2020 remained at 7%. Private businesses were also given assistance and subsidies by the government.
India’s Strengths: India’s strengths are telecom investments (1st), smartphone costs (1st), Information services exports (3rd), remuneration for service professions (4th), and terms of trade index (4th) (5th).
India’s Weaknesses: In sub-indices such as broadband users (64th), particle pollution exposure (64th), human development index (64th), Gdp growth (63rd), as well as foreign currency reserves per capita (62nd), India’s performance is the worst.

Top Performer Qualities

Investment in innovation, digitization, welfare benefits, varied economic activity, supporting public policy and leadership, all of which result in social cohesion, have all aided countries in better managing the crisis and so ranking higher in competition.

Unemployment was addressed: Competitive economies were able to move to a remote work pattern while also allowing for remote learning.

Public Spending: The efficacy of important social funding, including public finance, tax policy, and business regulation, is considered as easing the strain on the Covid-19-affected economies.

India’s Recent Competitiveness Measures

To improve India’s manufacturing capabilities and exports, the government has implemented the Production-Linked Incentive (PLI) Scheme in numerous industries.

The ‘Atmanirbhar Bharat Abhiyan (or Self-Reliant India Mission)’ has five pillars.

  • Economy,
  • Infrastructure,
  • System,
  • Vibrant Demography
  • and Demand

Steps to improve the Index

  • According to Michael Porter, a country that achieves a balance between economic growth advancement can boost productivity, which leads to increased competitiveness and thus wealth.
  • As a result, it is critical to building an environment that not only encourages enterprises to successfully compete in local and worldwide markets but also ensures that the standard of living of the average citizen increases.
  • Governments must provide an environment with efficient infrastructures, institutions, and rules that promote firms to create long-term value.

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Frequently Asked Questions on World Competitiveness Index

WCI is maintained by?

WCI is maintained by the Institute for Management Development (IMD)

What is India’s rank on the Index?

India ranked 43rd in the World Competitiveness Index.

What is a World Competitiveness Index?

The World Competitiveness Index is a comprehensive annual assessment that serves as a global benchmark for country competitiveness.

The ‘Atmanirbhar Bharat Abhiyan (or Self-Reliant India Mission)’ has how many pillars?

There are Five Pillars of Atmanirbhar Bharat Abhiyan.

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