Under Modi, India Again Jumps 16 Spots on Competitiveness Index

This is the largest jump by any economy on the list. (Photo: Reuters)

For the second year in a row, India has jumped 16 places to be ranked at 39 on the Global Competitiveness Index of the World Economic Forum (WEF) for 2016-17.

This is the largest jump by any country on the list, reported Business Standard. In 2015-16, India was ranked 55.

For the eight consecutive year, Switzerland was ranked as the most competitive country, followed by Singapore, the United States, Netherlands and Germany.

A country’s performance is measured on three indicators – basic requirements, efficiency enhancers, and innovation and sophistication. Further sub-indicators are used to fine-tune and arrive at the rankings.

Thanks to improved monetary and fiscal policies, as well as lower oil prices, the Indian economy has stabilised and now boasts the highest growth among G20 countries. 

World Economic Forum report

India jumped from 80 to 63 this year on the basic requirements parameter, as improvements were seen in indicators such as institutions, infrastructure and macroeconomic environment. However, the health and primary education indicators saw a slight drop.

Even after the 16-spot jump, the WEF report says “a lot needs to be done. The labour market is segmented between workers protected by rigid regulations and centralised wage determination, especially in the manufacturing sector, and millions of unprotected and informal workers.”

Source: Business Standard