India rises 16 notches in WEF Global Competitiveness Index

The Narendra Modi government’s policies seem to be having a salutary effect on India’s competitiveness, which has risen 16 notches in the last one year in the World Economic Forum’s (WEF) Global Competitiveness Index for 2016-17, the biggest jump by any country. The rise has been for the second year in a row.

Switzerland has maintained the top ranking for the eighth time continuously, a feat which the Geneva-based WEF has attributed to unrivalled innovation, a sophisticated business landscape, and the world’s most efficient workforce. The top ten list for 2016-17 has the same countries which were in top list in the last year, though the order has somewhat reshuffled. Other countries in the list are Singapore, the US, the Netherlands, Germany, Sweden, Britain, Japan, Hong Kong, and Finland.

On the index, India has a score of 4.52, where Switzerland had 5.81. India’s “competitiveness has improved across the board, in particular in goods market efficiency, business sophistication, and innovation,” Report 2016-17 said. “Thanks to improved monetary and fiscal policies as well as lower oil prices, the Indian economy has stabilized and now boasts of the highest growth among G20 countries.”

Recent reforms efforts have concentrated on improving public institutions, opening the economy to foreign investors and international trade, and increasing transparency in the financial system, the WEF said, but “still a lot needs to be done.”

Rigid regulations in the labor market and infrastructure remain concerns, the report said.