In the recently released World Competitiveness Index 2021 released by the Institute for Management Development’s (IMD) World Competitiveness Center, India retained its 43rd rank out of 64 nations (for the 3rd consecutive year). Switzerland topped the Index followed by Sweden in the 2nd spot & Denmark in the 3rd spot.
- India’s ranking in the 4 parameters are – Government Efficiency 46 (from 50 in 2020), the ranking in other 3 parameters remained unchanged compared to 2020 – Economic performance – 37, business efficiency – 32, infrastructure – 49.
World Competitiveness Index
- It is an annual report which measures the prosperity and competitiveness of 64 nations by examining 4 parameters – economic performance, government efficiency, business efficiency, and infrastructure.
- The 2021 Index examined the impact of COVID-19 on economies around the world in 2021.
i.Singapore slipped to 5th rank from 1st in 2020.
ii.The 8th rank, Taiwan reached the top-10 for the 1st time, while UAE & USA retained their rankings of 9th and 10th respectively.
iii.The top-performing Asian economies in order are Singapore (5th), Hong Kong (7th), Taiwan (8th) & China (16th).
iv.Among BRICS nations, India was ranked 2nd after China (16), followed by Russia (45th), Brazil (57th) & South Africa (62nd).
v.Botswana (61st) was the 64th country added to the ranking this year 2021.
i.India’s improvements in Government Efficiency factor are mostly due to relatively stable public finance (Government deficit remaining 7% in spite of the pandemic).
ii.Among sub-indices for government efficiency,
- India’s ranking in public finance (41), business legislation (43) and societal framework (53) improved while tax policy (34) decreased and institutional framework remained unchanged (45).
- India’s strengths lie in investments in telecoms (1), mobile telephone (1), ICT services exports (3), remuneration in services professions (4), terms of trade index (5).
- India’s performance was worst in sub-indices like broadband subscribers (64), exposure to particulate pollution (64), human development index (64), GDP per capita (63), and foreign currency reserves per capita (62).
About Institute for Management Development (IMD)
President – Jean-François Manzoni
Location – Lausanne, Switzerland