Seems it’s the tough time for the Indian economy!
The Indian economy is preparing for a big shock of a severe economic crisis amid severe declines reported by its various sectors.
Meanwhile, here comes another disappointing news for the country!
India has reportedly slipped down 10 points in the Global Competitiveness Index 2019 from 58th rank in 2018 to 68th position currently, out of 144 countries.
This drop in global ranking is attributed to the economic slowdown that the country is facing currently.
The annual Global Competitiveness Index, compiled by Geneva-based World Economic Forum (WEF), has positioned India as the worst-performing BRICS nations alongside Brazil that stood at 71st position.
Singapore emerged as the best performer replacing the United States as the world’s most competitive economy.
Hong Kong SAR stood at the 3rd position, followed by The Netherlands at 4th and Switzerland at the 5th positions.
The Global Competitiveness Index 4.0 2019 Rankings
Though India was found good in terms of macroeconomic stability and market size, the effect of high delinquency rate on its banking system has created a negative impact.
The country stood 15th in terms of corporate governance, 2nd for shareholder governance, and 3rd in terms of market size and renewable energy regulation.
India had bad performance due to shortcomings in basic enablers of competitiveness, weak ICT adoption, poor health conditions and low life expectancy rate.
Healthy life expectancy was one of the worst performances of India, for which the country was at 109th position out of 144 countries in the index.
The WEF study also pointed at lack of skill base and flexibility in trade, lack of measures protecting workers’ rights, labor market politics and lesser participation of women as the key reasons.
Female-to-male workers ratio in India stands at 0:26, which brought it 128th rank.
In terms of skillset, the country stood at 107th despite the Indian Government’s popular Skill India program.
However, the country is ahead of close neighbors: Sri Lanka (84), Bangladesh (105), Nepal (108) and Pakistan (110).
“The report shows that those countries which integrate into their economic policies an emphasis on infrastructure, skills, research and development and support those left behind are more successful compared to those that focus only on traditional factors of growth,” says Klaus Schwab, Founder and Executive Chairman of WEF.
India – 2019 Global Competitiveness Index 2019
| Global Competitiveness Index Details | |||||||||
| Details | 2018 | 2019 | |||||||
| Institutions | 47 | 59 | |||||||
| Infrastructure | 63 | 70 | |||||||
| ICT adoption | 117 | 120 | |||||||
| Macro Economic Stability | 49 | 43 | |||||||
| Health | 108 | 110 | |||||||
| Skills | 96 | 107 | |||||||
| Product market | 110 | 101 | |||||||
| Labour Market | 75 | 103 | |||||||
| Financial System | 35 | 40 | |||||||
| Market Size | 3 | 3 | |||||||
| Business Dynamism | 58 | 69 | |||||||
| Innovation Capability | 31 | 35 | |||||||
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