Snapshot of the ‘Global Competitiveness Report 2013-14
According to the Global Competitiveness Report 2013-2014, excellent innovation and strong institutional environments are increasingly influencing economies’ competitiveness. Amongst BRICS, the People’s Republic of China (29th) continues to lead the group, followed bySouth Africa (53rd), Brazil (56th) India (60th) and Russia (64th). Down one position, India now ranks 60th, continuing its downward trend that began in 2009. With a GCI score essentially unchanged since then, India has been overtaken by a number of countries. Once ahead ofBrazil and South Africa , it now trails them by several places and is behind China by a margin of 31 positions, while Russia (64th) has almost closed the gap. The report suggests that some of the world’s largest emerging market economies must engage business, government and civil society to implement long-overdue reforms.
Meanwhile, the situation has deteriorated further on the macroeconomic front, with India now 110th in this pillar. The inflation rate and public deficit-to-GDP ratio were dangerously close to double digits in 2012, and the debt to- GDP ratio is the second highest among the BRICS. Indeed, a March 2013 survey of sovereign debt analysts reveals an increased risk of sovereign debt default over the previous year. Another major concern is the country’s low level of technological readiness (98th). Although businesses adopt new technologies relatively promptly (47th), penetration rates of fixed and mobile Internet and telephony among the population remain among the lowest in developing Asia .
Global Competitiveness Index Ranking 2013-14
Components & India’s rankings
|
Pillars
|
India’s Rank
|
Basic requirements (Rank 96)
|
Institutions
|
72
|
Infrastructure
|
85
| |
Macroeconomic environment
|
110
| |
Health and primary education
|
102
| |
Efficiency enhancers (Rank 42)
|
Higher education and training
|
91
|
Goods market efficiency
|
85
| |
Labor market efficiency
|
99
| |
Financial market development
|
19
| |
Technological readiness
|
98
| |
Market size
|
3
| |
Innovation and sophistication factors (Rank 41)
|
Business sophistication
|
42
|
Innovation
|
41
| |
Global Competitiveness Index (out of 148 economies)
|
60
|
Source: PHD Research Bureau compiled from Global Competitiveness Report for 2013-14, World Economic Forum
Warm Regards,
Dr. S P Sharma
Chief Economist
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