In the 2019 edition of the IMD World Competitiveness Rankings, India achieved the 43rd position, making it one of the most competitive economies globally. The top spots were taken by Singapore, Hong Kong SAR, and the USA respectively, showcasing their strong economic performance. Interestingly, the United Arab Emirates made it to the top five for the first time.
Factors Contributing to India’s Improved Ranking
The upgrade in India’s rank by one spot over a year is the result of several dynamic factors. One of the key drivers behind this improvement has been the robust rate of growth in real Gross Domestic Product (GDP). This positive economic trajectory has provided an impetus to India’s competitive stance on a global level.
Further reinforcing this upward movement is the significant improvements made within the country’s business legislature. An array of reforms and policies geared towards facilitating easier business processes and environments have been instrumental in this regard. Additionally, the Indian government’s heightened public expenditure on education has played a pivotal role in fostering a more conducive environment for competitiveness.
In these rankings, India has shown commendable performance across various economic parameters and tax policies. However, the country needs to improve upon certain aspects.
Areas of Concern for India
Despite its progress, there are several areas where India lags behind. These include spheres like public finance, societal framework, education infrastructure, health, and environment. Addressing these issues is crucial for India to further bolster its competitive standing.
Key Challenges
India continues to grapple with several challenges on its path to becoming a more competitive economy. The foremost among these is maintaining high growth while ensuring ample employment generation. Other crucial obstacles include enhancing digital literacy and internet bandwidth in rural realms, implementing fiscal discipline, and managing issues related to the introduction of the Goods and Services Tax. Another significant challenge lies in resource mobilization for infrastructure development.
| Competitiveness Ranking | Country | GDP Growth Rate |
|---|---|---|
| 1 | Singapore | 2.4% |
| 2 | Hong Kong SAR | 0.5% |
| 3 | USA | 2.3% |
| 43 | India | 6.8% |