GLOBAL COMPETITIVENESS INDEX

Why in news?:

India has been ranked 40th on the latest world competitiveness ranking released by the International Institute for Management Development (IMD).

Although India has slipped three spots from the previous year, it has improved from its 43rd rank in 2019-2021.

It emphasizes a long-term trend highlighted in past editions – that the countries on the top of the list each have a unique approach to becoming competitive.

Report Highlights:

Progress in government efficiency but points out weaknesses in business efficiency, infrastructure, and economic performance.

The top three spots in the ranking were claimed by Denmark, Ireland, and Switzerland.

 What is World Competitiveness Ranking?:

It analyzes and ranks countries according to how they manage their competencies to achieve long-term value creation. 

It provides benchmarking and trends, as well as statistics and survey data based on extensive research.

Measures for India:

The three main measures that helped India in its score are exchange rate stability, compensation levels, and improvements in pollution control.

Challenges for India:

Sustaining high GDP growth, managing financial market volatility, controlling inflation and fiscal deficit, accelerating digital transformation, and mobilizing resources for infrastructure development.

Note: Global Competitiveness Index is different from The Global Competitiveness Report (GCR)  (a yearly report published by the World Economic Forum)

International Institute for Management Development (IIMD) is an independent university institute with campuses in Lausanne, Switzerland and Singapore.