India jumps 6 places to 37th rank on IMD’s World Competitiveness Index

What is the News?

The World Competitiveness Index 2022 has been released.

What is the World Competitiveness Index?

Released by: Institute for Management Development (IMD) since 1989.

Purpose: To rank 63 economies and assess the extent to which a country promotes the prosperity of its people by measuring economic well-being via hard data and survey responses from executives.

Parameters: The index measures the prosperity and competitiveness of countries by examining four factors: 1) Economic performance, 2) Government efficiency, 3) Business efficiency and 4) Infrastructure.

What are the key findings of the index?

Globally: Denmark has topped the index followed by Switzerland and Singapore.

– The important factors found to be impacting businesses in 2022 are inflationary pressures, geopolitical conflicts, supply chain bottlenecks and COVID-19.

Findings related to India

India has been ranked 37th in the index. India has witnessed the sharpest rise among the Asian economies with a six-position jump from 43rd to 37th rank. 

Observations on India: India has made a significant jump in ranking largely due to gains in economic performance(from 37th to 28th).

The top five attractive factors of India’s economy for business are – a skilled workforce, cost competitiveness, dynamism of the economy, high educational level, and open and positive attitudes.

However, the challenges that India has to face include: managing trade disruptions and energy security, maintaining high GDP growth post the pandemic, skill development, and employment generation, asset monetization, and resource mobilization for infrastructure development.

Source: The post is based on the article “India jumps 6 places to 37th rank on IMD’s World Competitiveness Index” published in Business Standard on 16th June 2022.