India which previously stood at 58th rank has been stated to be amongst the worst BRICS nations along with Brazil
New Delhi| India tumbled down by 10 places, settling at 68th on an annual global competitiveness index, Largely because of improvements witnessed by several other economies. While Singapore has replaced the US as the world’s most competitive economy.
India previously stood on 58th rank on the annual competitiveness Index assembled by Geneva-based World Economic Forum. India has been stated as amongst the worst BRICS nations along with Brazil on 71st in the list.
Columbia, South Africa, Turkey have overtaken India
The WEF said the drop of 10 places in India’s position to 68th place may look dramatic, but the decline in the country’s competitiveness score is relatively small. Several similarly-placed economies including Colombia, South Africa, and Turkey improved over the past year and hence these countries have overtaken India.
The Latest Index on Wednesday further states India ranks high on macroeconomic stability and market size, while its financial sector is relatively deep and stable despite the high delinquency rate.
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India also ranks high at 15th in terms of corporate governance, while it is ranked second globally for shareholder governance, the WEF study showed.
The report even states, India also punches above its development status when it comes to innovation, which is well ahead of most emerging economies and on par with several advanced economies.
India’s positive metrics contrast with shortcomings in basic enablers
But, these positive metrics contrast with major shortcomings in some of the basic enablers of competitiveness in case of India, the WEF said, while flagging limited ICT (information, communications, and technology) adoption, poor health conditions and low healthy life expectancy.
The WEF explains the Healthy life expectancy, where India has been ranked 109 out of 141 countries, is one of the shortest outside Africa and significantly below the South Asian average.
India needs to develop its skills base while its product market efficiency is undermined by a lack of trade openness and the labour market is characterized by a lack of worker rights’ protections, insufficiently developed active labour market policies and critically low participation of women.
In India the number of female workers to male workers of 0.26. India has been ranked low at 128th place. India is also ranked low at 118th in terms of meritocracy and incentivization and at 107th place in a matter of skills.
In the overall ranking, India is followed by some of its neighbours including Sri Lanka at 84th place, Bangladesh at 105th, Nepal at 108th and Pakistan at 110th place.
The Global Competitiveness Index (GCI), which was launched in 1979, maps the competitiveness landscape of 141 economies through 103 indicators organized into 12 pillars. Singapore has become the world’s most competitive economy in 2019, pushing the US to second place. Hong Kong SAR is ranked 3rd, the Netherlands is 4th and Switzerland is ranked 5th.