Business Standard
India pips China in WEF's competitiveness index
September 26, 2006
Ever since Goldman Sachs came
out with its much-talked-about report saying Brazil, Russia, India and China
will dominate the world’s economy by 2040, India has often founds itself clubbed
with the other three.
However, the World Economic
Forum’s Global Competitiveness Index (GCI) gives India the chance out break out
of the rank.
The rankings for FY07 place it 43rd, well ahead of Brazil (66), China (54) and
Russia (62).
Even last year, India, in the 45th place, was ahead of the other three.
In fact, each of the other
three slipped this year: China from the 48th place to 54th, Brazil from the 57th
to 66th and Russia from the 53rd to 62nd.
Switzerland, Finland and Sweden are the world’s most competitive economies
according to the report.
Denmark, Singapore, the United States, Japan, Germany, the Netherlands and the
United Kingdom complete the top 10 list, but the United States shows the most
pronounced drop, falling from first to the sixth.
As in previous years, India continues to score well in indicators related to
innovation and sophistication of firm operations, as well as in the adoption of
technologies from abroad.
However, a number of weaknesses remain. Efforts to reduce the high budget deficit – one of the highest of the world – need to be sustained, and, as in previous years, the lack of appropriate infrastructure impedes growth in more remote regions of the country.
Dealing with shortcomings in
the provision of health services and education will ensure that the benefits of
economic growth are more broadly distributed.
"The quality of the business environment in India has improved tangibly in
recent years... The available evidence suggests that the Indian economy may have
entered a high growth plateau – the challenge for the authorities will be to
ensure that this process is sustained and that it precipitates further progress
in poverty reduction," said Augusto Lopez-Claros, Chief Economist and Head of
the World Economic Forum’s Global Competitiveness Network, in a press release.
The rankings are drawn from a combination of publicly available hard data and
the results of the Executive Opinion Survey, a comprehensive annual survey
conducted by the World Economic Forum, together with its network of Partner
Institutes (research institutes and business organisations) in the countries
covered by the report.
This year, over 11,000 business leaders were polled in a record 125 economies
worldwide. The survey questionnaire is designed to capture a broad range of
factors affecting an economy’s business climate that are critical determinants
of sustained economic growth. The Forum annually delivers a comprehensive
overview of the main strengths and weaknesses in a large number of countries,
making it possible to identify key areas for policy formulation and reform.
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