Question : Global Competitiveness Index

Will the MINISTER OF FINANCE be pleased to state:

(a) whether as per latest World Economic Forum’s Global Competitiveness Index, India has slipped from 58th rank in 2018 to 68th rank in 2019 among 140 countries;

(b) if so, the details thereof along with the reasons therefor;

(c) the criteria adopted by the World Economic Forum to arrive at ranking;

(d) the areas/indicators where India ranked low and the areas/indicators where India has improved its ranking;

(e) the corrective steps taken by the Government to improve the ranking of India; and

(f) whether these steps have led to the desired outcome and if not, the reasons therefor?

Minister of State (Finance) (ShriAnurag Singh Thakur)

(a) to (f): As per the Global Competitiveness Index (GCI), 2019 in South Asian region India is placed at 68th position due to faster improvements of several countries previously ranked lower. The GCI measures “national competitiveness” defined as “the set of institutions, policies and factors that determine the level of productivity”. The exercise involves performance review of 141 countries under four broad categories, viz. the enabling environment, human capital, markets and innovation ecosystem. India is ranked 2nd in shareholder governance and 3rd in terms of market size and renewable energy regulation. It ranks considerably high in Corporate
review of 141 countries under four broad categories, viz. the enabling environment, human capital, markets and innovation ecosystem. India is ranked 2nd in shareholder governance and 3rd in terms of market size and renewable energy regulation. It ranks considerably high in Corporate Governance (Rank 15th), Macroeconomics stability (Rank 43rd), and Financial Sector (Rank 40th). India performed well when it comes to Innovation Capability (35th), well ahead of most emerging economies and on par with several advanced economies. However, as per GCI, India’s rank dropped below 100 in Information, communication and technology adoption (Rank 120th), Health (Rank 110th), Skills (Rank 107th), Product Market (Rank 101st), Labour Market(Rank 103rd) and Financial System Stability (Rank 103rd).

Government has taken a slew of measures to not only boost the economy but also improve upon the ease of doing business and ease of living with programs such as Digital India, Skill India, Make in India, Ayushman Bharat, simplification of Labour Laws into 4 Labour Codes etc. The desired outcome of these various measures to boost the economy will be tangible only in the longer run.
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