According to the International Institute for Management Development (IMD)’s annual World Competitiveness Index – 2022 (34th edition) India has jumped 6 positions from 43rd in 2021 to 37th in the 2022 ranking. India has recorded the sharpest rise among the Asian economies.
Denmark has topped the 2022 ranking featuring 63 economies, followed by Switzerland(2nd) and Singapore(3rd).
The major 4 factors in the ranking are Economic Performance, Government Efficiency, Business Efficiency, and Infrastructure.
Note:
The 2022 World Competitiveness Ranking(WCR) was released by the IMD Business school in Switzerland and Singapore. Its think tank, IMD World Competitiveness Centre, ranked 63 economies and assessed the extent to which a country promotes its prosperity and its people by measuring the economic well-being through hard data and survey responses from executives.
Top 5 & India on World Competitiveness Index 2022:
| Rank (2022) | Country | Rank (2021) | Change |
|---|---|---|---|
| 1 | Denmark | 3 | +2 |
| 2 | Switzerland | 1 | -1 |
| 3 | Singapore | 5 | +2 |
| 4 | Sweden | 2 | -2 |
| 5 | Hong Kong – special administrative region (SAR) | 7 | +2 |
| 37 | India | 43 | +6 |
Highlights:
i.The economies among the top 10 include the Netherlands (6th), Taiwan (7th), Finland (8th), Norway (9th), and the USA (10th).
ii.According to the 2022 ranking, Singapore (3rd), Hong Kong (5th), Taiwan (7th), China (17th), and Australia (19th) were the top-performing Asian economies.
Competitiveness Landscape for 2022:
India’s ranking in Economic performance has increased from 37 in 2021 to 28 in 2022, Government efficiency has increased from 46 to 45 and Business efficiency has increased from 32 to 23. India’s ranking in Infrastructure remains at 49.
India has ranked 11th on the Peer Group Ranking Aisa-Pacific 2022.
Key Points:
i.The challenges faced by India include managing trade disruptions and energy security, maintaining high GDP growth post the pandemic, skill development, and employment generation, asset monetisation, and resource mobilization for infrastructure development.
ii.A skilled workforce, cost competitiveness, the dynamism of the economy, high educational level, and open and positive attitudes were the top 5 attractive factors of India’s economy for business.
iii.The World Competitiveness Ranking is based on 333 competitiveness criteria selected as a result of comprehensive research using economic literature, international, national and regional sources and feedback from the business community, government agencies and academics.
Additional info:
i.According to the IMD’s WCR, the inflationary pressures along with the COVID-19 pandemic and the invasion of Ukraine by Russia are affecting the competitiveness of the national economies.
ii.Inflationary pressures (50%), geopolitical conflicts (49%), supply chain bottlenecks (48%) and COVID-19 (43%) were the most important trends that had an impact on businesses in 2022.
About International Institute for Management Development
President– Jean-François Manzoni
Location– Lausanne (Switzerland) & Singapore
