India slipped to 71st position out of 144 countries by losing 11 places in the global competitiveness list of Geneva-based World Economic Forum (WEF) that came on 3 September 2014.
India stood at the lowest position among the BRICS countries. Among BRICS countries, China stood at one place with 28th spot, Russia stood at 2nd place with rank at 53rd position followed by South Africa (56th rank) and Brazil (57th rank).
The decline of 11 places poses challenge for the Indian government to improve competitiveness and revive the economy. However, in Global Competitiveness Report 2013-2014, India ranked at 60th position.
India was ranked third globally only in one aspect- Market Size. A rank of 1-7 is considered among best in the world.
Global Competitiveness Index (GCI) of India
India stood at 71st position in GCI with the score of 4.2 out of 7. The three basic parameters that decide the rankings are:
Basic Requirements: India stood at 92nd position in Basic Requirements category with the score of 4.2. The basic requirement is of 60 percent that includes institutions, infrastructure, macroeconomic environment, health and primary education.
Efficiency Enhancers: India stood at 61st position in efficiency enhancers scoring 4.2. Efficiency Enhancers contribute 35 percent for the evaluation of the GCI. It includes higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness and market size.
Innovation and Sophistication Factors: India stood at 52nd position in Innovation and Sophistication Factors scoring 3.9. Innovation and Sophistication Factors contribute 5 percent for the evaluation of the GCI. It includes business sophistication and innovation factors.
The problematic factors behind the slide in India's position are- Access to financing, Tax rates, Foreign currency regulations, Corruption, Inadequate supply of infrastructure, Policy Instability, Inefficient government bureaucracy, Inflation, Restrictive labour regulations, Government instability, Inadequately educated workforce, Poor work ethics, Crime and theft, Tax Regulations and Poor public health
Top ten rankings in the Global Competitiveness List
As per the Global Competitiveness Report 2014-15, Switzerland stood first in the list. Other countries in the top ten are:
• Singapore- 2nd rank
• United States- 3rd rank
• Finland- 4th rank
• Germany- 5th rank
• Japan- 6th rank
• Hong Kong SAR- 7th rank
• Netherlands- 8th rank
• United Kingdom- 9th rank
• Sweden- 10th rank
WEF's annual Global Competitiveness Index
Global Competitiveness Report was launched in 1979 by Klaus Schwab, Founder and Executive Chairman of the World Economic Forum. Initially, it covered 16 countries. However, 144 countries were included in the Global Competitiveness Report 2014-15.
The Global Competitiveness Report (GCR) is an yearly report published by the World Economic Forum. Since 2004, the Global Competitiveness Report ranked countries based on the Global Competitiveness Index. The report assesses the ability of countries to provide high levels of prosperity to their citizens.
The rankings are based on scores covering 12 categories- institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication and innovation.
When: 3 September 2014