India has been positioned as the 40th most competitive economy on the World Economic Forum's Global Competitive Index (GCI) 2017-18. It has slipped one place from the last year ranking.
Switzerland is at the top of the world global index followed by US Singapore at the second and third places, individually.
World Economic Forum puts out the ranking of 137 countries from all around the world. It measures all economies at the factor of future productivity and prosparity. India has slipped from the 39th position to 40th while neighbouring China is positioned 27th.
India is at third position in the BRICS economies. China (27th) and Russia (38th) are placed above India among the BRICS nations. Other countries South Africa and Brazil are placed at the 61st and 80th spots, respectively.
India is at the top place among south-east Asian countries followed by Bhutan (85), Sri Lanka (85), Nepal (88), Bangladesh (99) and Pakistan (115).
WEF said India's score is at its best ever as per the current methodology, which positioned Switzerland as the world's most competitive economy.
As per the WEF report India's competitiveness has enhanced. WEF also said that among the developing markets, which have been seen as a having a great potential in the mid 2000s, Brazil and Turkey have now lost a significant part of the ground they picked up before 2013, however China, India and Indonesia keep on improving.
Concerns with India
The report additionally features how corruption, access to financing and Tax regulation are the problematic factors for doing business in India.
The new tax regime GST may address the tax regulation problem in India, however, a lot of things depend upon its implementation.
The World Economic Forum praised India’s efforts towards the information and communications technology (ICT) sector. It said that India’s performance improved in ICT indicators, particularly Internet bandwidth per user, mobile phone and broadband subscriptions, and Internet access in schools.
About GCI (Global Competitive Index)
Global Competitive Index scores are calculated on the basis of 12 categories called ‘pillars of competitiveness’, which include parameters like institutions, health and primary education, , infrastructure, labour market efficiency, technological readiness, financial market development and market size.