IMD’s World Competitiveness Index ranks India at 43rd; Singapore tops the list
India has ranked 41st on the IMD World Competitiveness Ranking every year since 1989. It slipped to 45th in 2017 but improved to 44th in 2018 and then to 43rd in 2019.
An annual World Competitiveness Index compiled by Institute for Management Development (IMD) has ranked India at the 43rd position. The International Business School mentioned on June 16 that the continued low ranking is due to the traditional weaknesses such as insufficient education investment and poor infrastructure.
Singapore has successfully retained the top position on the 63rd nation list. Denmark has moved up to the 2nd position, it was 8th last year. Switzerland has ranked 3rd while Netherland has retained its 4th place. Hing Kong has secured the 5th place, it was 2nd in 2019.
India has ranked 41st on the IMD World Competitiveness Ranking every year since 1989. It slipped to 45th in 2017 but improved to 44th in 2018 and then to 43rd in 2019. The ranking is produced by the business school based in Switzerland and Singapore.
⏰It's that time of year again! 📊— Institute for Management Development (IMD) (@IMD_Bschool) June 16, 2020
The IMD World Competitiveness Center 2020 Ranking is now out! Which countries are topping the charts?
Discover the ranking here: https://t.co/rHOzH1YGMj#IMDImpact #worldcompetitiveness pic.twitter.com/KdWkH1PwXC
• In the ranking, China has slipped from 14th to 20th place while the US has moved down to 10th place, it was 3rd in 2019.
• Among the BRICS Nations, India has ranked second after China followed by Russia at 50th rank, Brazil 56th, and South Africa 59th.
• As per IMD, except, Singapore, Taiwan, the Philippines, and the Korean Republic, most of the Asian economies have seen a drop in their rankings this year.
• For Singapore which moved to the top rank last year, IMD states that its position is largely driven by the relative ease of setting up a business, cutting-edge technological infrastructure, and availability of skilled labour.
• IMD also mentioned that the impact of COVID-19 on the competitiveness ranking has also partially been captured by the executives’ opinions regarding the effectiveness of the different health systems.
• Only Singapore and Thailand among the ASEAN countries included in the survey have shown positive performance in the healthcare infrastructure.
India at IMD World Competitiveness Ranking:
According to the IMD statement, even though India’s position has remained unchanged in the 2020 list, the country has recorded improvements in areas such as current account balance, long-term employment growth, foreign currency reserves, high tech exports, overall productivity, public expenditure on education and political stability.
However, it added that the country has moved down in areas like real GDP growth, exchange rate stability, taxes, competition legislation.
The Head of Competitiveness Centre at IMD Business School, Arturo Bris mentioned that India continues to struggle on the list and the recent Moody’s downgrade rating of the country reflects the uncertainties regarding the economy’s future. He informs that in the ranking the emphasis is on the traditional weaknesses of India. To follow the path of China, the country must stress its intangible infrastructure.
Bris added that Moody’s has threatened the country with the downgrade and that would put it in a terrible position to attract foreign capital. So, the government must focus to fix the short- term problems which will require to improve the credibility of the government itself. In a less global world with USA, Europe, and China looking inwards, currencies like rupees are going to suffer and display high volatilities.