How India has made a big leap in the World Competitiveness Index?

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India has made the longest jump among all the countries of Asia, from 43rd place last year to 37th position this year.

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Guest Author: Shri Prahlad Sabnani, Retd. Deputy General Manager, State Bank of India, India

More recently, on 15 June 2022, the World Competitiveness Index was released by the Switzerland-based Institute for Management Development. In this index, India has made the longest jump among all the countries of Asia, from 43rd place last year to 37th position this year. This long jump of India in the above index has been possible due to many essential reform programs, especially in the economic sector.
Since 1989, Management Development Institute, Switzerland, has been showing the competitive status of many world countries in its annual report. The assessment of how the countries included in this list can make themselves competitive at the international level to build their utility for the long term is shown in this report and is mainly based on the following four elements.

  • Status of economic development in the country.
  • Status of business development in the country.
  • Status of business in the country.
  • Status of better development in the country. It is also included in the executing work.
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Based on the four elements mentioned above, improvement in India’s performance will be visible in the year 2022. India has strengthened its position in economic development from the 37th of 2021 to the 28th of 2022. India has also improved the state of government efficiency from 46th place in 2021 to 45th in 2022.

In the year 2022, a total of 63 countries of the world have been assessed for the World Competitiveness Index by the Management Development Institute, Switzerland, based on the four elements mentioned above. As a result, Denmark has improved its position globally from the third position achieved in 2021 to the first in 2022. Switzerland is in second place and Singapore in third place. Among the Asian countries, the countries that have found their place in this list are Singapore (3), Hong Kong (5), Taiwan (7), China (17), and Australia (19).

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Photo by Helena Lopes

Similarly, India has improved from the 32nd position in 2021 to the 23rd in 2022, improving its business efficiency. On the other hand, the labor market is a significant sub-factor in occupational efficiency parameters and occupational efficiency, and India has risen from the 15th position in the year 2021 to the sixth position in the year 2022 in the field of labor market.

However, according to the above index report, there has been no significant improvement in India’s position in the field of infrastructure development in the year 2022, so India’s position has remained in the 49th position in the year 2021, and the year 2022.

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Photo by Yasin Aydın on Pexels.com

The improvement in India’s position in the World Competitiveness Index in the year 2022 has been possible mainly due to several decisions taken by the Government of India under economic reform programs.

In addition, India’s re-regulation in areas such as drones, space, geospatial mapping, and space by implementing the reforms program carried out in the area of ​​retrospective tax in the year 2021 also contributed to India’s stellar performance in the World Competitiveness Index has played an important role.

India has restored the business community’s confidence after the worldwide corona pandemic. At the same time, India has also become a driving force in the global movement to fight climate change today. Moreover, India’s performance has also improved in the World Competitive Index because of its work in the field of climate change and its work at various levels to fulfill its promise to have zero carbon emission by the year 2070 at the COP26 summit and successfully installed.
Furthermore, India has also been able to leapfrog in the World Competitiveness Index due to the actions taken at various levels to fulfill the promise.
The economic story of India can be summarized in that the cost of a mobile phone in India has almost halved in recent years; India has become a leading country when it comes to exports of information technology, growth in foreign trade, high wages in the service sector, substantial investments in the telecom industry, etc. These and other factors have made India a strong country.

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