On 20th June 2023, The International Institute for Management Development (IMD) published 35th edition of the World Competitiveness Index 2023 which ranks India at 40th position. The top 3 positions in the ranking were claimed by Denmark, Ireland, and Switzerland.
- The data published explores multiple factors that affect the prosperity of 64 economies.
India in the World Competitiveness Index 2023:
i.India dropped 3 places to rank 40 which is an improvement from the 43rd position secured in 2019-2021
ii.The key factors that contributed to India’s ranking were exchange rate stability, compensation levels and advancements in pollution control.
iii.The report outlined the issues that India is projected to encounter in 2023- maintaining high GDP(Gross domestic product) growth, managing financial market volatility and controlling inflation and fiscal deficit.
iv.The report states that Indian government’s efficiency has increased but still lagging in business efficiency infrastructure and economic performance.
Top 5 & India on World Competitiveness Index 2023:
| Rank 2023 | Country | Rank 2022 | Ranking change |
|---|---|---|---|
| 1 | Denmark | 1 | – |
| 2 | Ireland | 11 | +9 |
| 3 | Switzerland | 2 | -1 |
| 4 | Singapore | 3 | -1 |
| 5 | Netherlands | 6 | +1 |
| 40 | India | 37 | -3 |
Factors measuring competitiveness:
It is based on 336 competitiveness criteria and four factors, namely Economic performance, Government efficiency, Business efficiency, and Infrastructure.
Highlights:
i.Denmark’s top position is based on its consistent achievements in all four competitiveness factors.
ii.Ireland made the most impressive overall improvement as it leapt from 11th place to second.
iii.Switzerland retained the third place due to its strong performance in all factors of competitiveness. It ranks first in government efficiency and infrastructure
iv.The rest of the top 10 (6 to 10) are Taiwan(China), Hong Kong SAR(Special Administrative Region), Sweden, USA, UAE.
v.European economies dominated the top 10 rankings.
vi.Six South American countries occupied the bottom 10 positions in the index, with Venezuela ranking last at 64th place.
Note: Kuwait is the latest economy to join the ranking, making its début in 2023.
World Competitiveness Index:
i.The IMD World Competitiveness Yearbook (WCY), first published in 1989, is a comprehensive annual report and worldwide reference point on the competitiveness of countries.
ii.Based on a comprehensive study, it provides benchmarks as well as patterns, and also statistics, and survey data.
iii.It analyzes and ranks countries according to how they manage their competencies to achieve long-term value creation.
