India 39th in Most Competitive Economy Index by WEF Jumped 16 Spots - Important [ Current Affairs - International Relations ]

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India is at 39th position in the index of most competitive economy 2016-17. The index is released by World Economic Forum (WEF) in the list of 138 countries. India has not become second fastest growing BRICS country after China.

  • India has jumped 16 spots and claimed 39th rank in one year. Previously in 2015-16 India was ranked at 55th. This is the largest gain ever made by any country in most competitive economy index.
  • The Index is based on:
  1. Basic business requirements
  2. Efficiency enhancers
  3. Innovation and sophistication factor

Key Facts

  • India’s achievement is based on the improved monetary, fiscal policies and lower oil prices that have helped India stabilize and claim the highest growth among G20 countries. Reform efforts are mainly focused on:
  1. Improving public institutions (up 16)
  2. Opening the economy to foreign investors and international trade (up 4)
  3. Increasing transparency in the financial system (up 15)
  • For eight successive years, Switzerland has managed to top the index and is followed by Singapore.

Top Ten Countries

Table shows Top Ten Countries

Table shows Top Ten Countries

Country

Ranking 2016-17

Ranking 2015-16

Switzerland

1

1

Singapore

2

2

United States

3

3

Netherlands

4

5

Germany

5

4

Sweden

6

9

United Kingdom

7

10

Japan

8

6

Hong Kong SAR

9

7

Finland

10

8

BRICS Countries Rank

Table shows BRICS Countries Rank

Table shows BRICS Countries Rank

Country

Ranking 2016-17

Ranking 2015-16

China

28

28

India

39

55

Russia

43

45

South Africa

47

49

Brazil

91

75

  • India was ranked at 59th position in 2012-13. At 60th position in 2013-14 edition of Global Competitiveness Index.
  • Along with India other countries which climbed are:

Table shows India and other countries climbed

Table shows India and other countries climbed

Country

Ranking 2016-17

Ranking 2015-16

Climbed

India

39

55

16

Albania2

80

93

13

Jamaica

75

89

11

Bhutan

97

105

8

Malta

40

48

8

Panama

42

50

8

Botswana

64

71

7

Georgia

59

66

7

Dominican Republic

92

98

6

Mexico

51

57

6

12 Pillars of India on Competitiveness

  • The competitiveness index is based on 3 main indicators made up of 7 pillars. Index is prepared based on overall ranking on those 7 pillars. All countries are given 1-7 points in each of the pillars.

Table shows 12 Pillars of India on Competitiveness

Table shows 12 Pillars of India on Competitiveness

Sub Index

Rank from 138 Countries

Score (1-7)

India (Overall)

39

4.5

Basic Requirements

63

4.6

Pillar 1: Institution

42

4.4

Pillar 2: Infrastructure

68

4.0

Pillar 3: Macroeconomic environment

75

4.5

Pillar 4: Health and Primary education

85

5.5

Efficiency enhancers

46

4.4

Pillar 5: Higher education and training

81

4.1

Pillar 6: Goods market efficiency

60

4.4

Pillar 7: Labour market development

84

4.1

Pillar  8: Technological readiness

38

4.4

Pillar  9: Financial market development

110

3.0

Pillar 10: Market size

3

6.4

Innovation and sophistication factor

30

4.2

Pillar 11: Business Sophistication

35

4.4

Pillar 12: Innovation

29

4.0

  About WEF (The World Economic Forum)

  • Swiss nonprofit foundation.
  • Established in 1971 by the Swiss authorities as an international institution for public-private cooperation.
  • Headquartered in Cologny, Geneva.

- Published on: September 28, 2016