World Competitiveness Index 2021: Switzerland tops ranking, India ranked 43rd

India maintained its 43rd rank on the World Competitiveness Index 2021, compiled by the Institute for Management Development (IMD). Switzerland topped the 2021 rankings, followed by Sweden at 2nd place.

World Competitiveness Rankings List comprises a total of 64 nations. Innovation, digitalization, welfare benefits, and social cohesion were key to economic performance in the 2021 rankings.

While Denmark moved one spot down to the 3rd rank, the Netherlands retained its 4th place and Singapore slipped to the fifth place from its top ranking in 2020. 

The countries were ranked on the basis of four key factors:

1. Economic Performance
2. Government Efficiency
3. Business Efficiency
4. Infrastructure

India's performance based on these four factors in past 5 years

• According to IMD, India has maintained its position for the past three years but this year, it showed significant improvements in government efficiency and this can be a result of relatively stable public finances despite difficulties brought by the pandemic.

• It can also be a result of the positive feedbacks registered among Indian business executives with respect to the support and subsidies provided by the government to the private companies.

• The short-term performance of India's economy will, however, depend on its ability to address the pandemic.

Top-performing Asian economies

1. Singapore (5th)
2. Hong Kong (7th)
3. Taiwan (8th)
4. China (16th)

Note: Taiwan entered the top 10 rankings for the first time since the ranking began 33 years ago. It was ranked 11th in 2020. 

BRICS Nations Ranking

1. China (16th)
2. India (43rd)
3. Russia (45th
4. Brazil (57th)
5. South Africa (62nd)

World Competitiveness Index 2021: Top 20 Countries

World Competitiveness Index 2021: Key Findings

• The report notes that qualities such as investment in innovation, digitalisation, welfare benefits and leadership, resulting in social cohesion have helped countries better weather the crisis and thus ranked higher in competitiveness.

• The top-performing economies are characterised by varying degrees of investment in innovation, supportive public policy and diversified economic activities.

• The report stated that strength in these areas prior to the pandemic allowed these economies to address the economic implications of the crisis more effectively.

• Further, it said that the competitive economies succeeded in transitioning to a remote work routine while also allowing remote learning. It added that addressing unemployment has been fundamental, 

• The report also pointed out that the countries that ensured the effectiveness of key public spending, such as public finance, tax policy and business legislation, are seen as essential policies to relieve the pressure on the economies hit by COVID-19.

Background 

The IMD World Competitiveness Ranking ranks 64 economies and assesses the extent to which the country promotes the prosperity of its people by not only measuring economic well-being through hard data but also through survey responses from executives. This year's rankings expose the economic impact of the pandemic across the globe.