Global Competitiveness Index
Context:
India has ranked 40th on the latest world competitiveness ranking released by the International Institute for Management Development (IMD).
About Global Competitiveness Index:
- The IMD World Competitiveness Yearbook (WCY), first published in 1989, is a comprehensive annual report that serves as a global reference point for a country’s competitiveness.
- It employs surveys, statistical data and trends to evaluate and rank the competitiveness of 64 countries on various aspects, including GDP, productivity, and how countries manage political, social and cultural factors to achieve long-term value creation.
- Main Evaluation criteria consisting 334 competitiveness parameters
- Economic Performance
- Government Efficiency
- Business Efficiency
- Infrastructure
- India progressed in government efficiency but lagged in business efficiency, infrastructure and economic performance.
- Key contributing factors to the country’s score were exchange rate stability, compensation levels and advancements in pollution control.
- The report also outlined challenges facing India in 2023, such as sustaining high GDP growth, managing financial market volatility, controlling inflation and fiscal deficit, accelerating digital transformation and mobilising resources for infrastructure development.
- Out of the 64 economies ranked in the annual report, Denmark, Ireland and Switzerland claimed the top three spots, while the Netherlands, Taiwan, Hong Kong, Sweden, the US and the UAE completed the top 10.