India jumps 16 spots in global competitiveness: Praise for NDA and 4 other takeaways from report

The report should come as a confidence booster for the NDA as it says the rise in India's ranks is mostly due to the government's policies

FP Staff September 28, 2016 09:46:24 IST
India jumps 16 spots in global competitiveness: Praise for NDA and 4 other takeaways from report

.In a confidence booster to the Narendra Modi government for its economic and business policies, India has jumped 16 spots to 39th rank in the World Economic Forum's Global Competitiveness Index.

The index is calculated based on pillars such as institutions, infrastructure, macro economic environment, health and primary education, higher education and training, goods market efficiency, labor market efficiency, financial market development, technological readiness, market size, business sophistication and innovation.

Here are five takeaways from the report:

India jumps 16 spots in global competitiveness Praise for NDA and 4 other takeaways from report

Narendra Modi. Reuters file photo

1) Only India from South Asia among top half: "Six of the nine East Asian emerging economies feature in the top half of the Global Competitve Index rankings; among the six South Asian economies covered, only India achieves this feat," the report says.

2) Pakistan deteriorating: "Since 2007, the gap between the best - and worst performing economies in the (South Asian) region has increased in some of the drivers of competitiveness, mostly as a result of the deteriorating situation in Pakistan.... The quality of infrastructure has improved significantly (although from low levels) in India, Bangladesh, and Sri Lanka, while it stalls in Nepal and deteriorates in Pakistan. Pakistan is also the only economy that fails to improve its macroeconomic environment and health and primary education levels, falling behind other South Asian economies," the report says.

3) India poor in tech readiness: "Financial market development remains poor across the entire South Asian region, as does technological readiness; this last area improves significantly only in Bangladesh and Sri Lanka, which overtook India to become the best performer in this pillar in the region," the report says.

4) NDA government praised, profusely: "India’s competitiveness score stagnated between 2007 and 2014, and the economy slipped down the GCI rankings. Since the new government took office in 2014, India climbed back up the rankings to 39th in this edition of the Report, from 48th in 2007–2008," the report says. Assessing a decade of India's performance, it says, while health and basic education improved throughout the decade, improvement in infrastructure and institutional environment happened after the new government assumed office. So also is the case in macro economic conditions where global commodity price fall is also a contributing factor.

5) Bank NPAs problem revealed, but no solution: "...Financial market development is the pillar most dragging down India’s competitiveness compared to 10 years ago. Here the efforts of the Reserve Bank of India have increased transparency in the financial market and shed light on the large amounts of non-performing loans, previously not reported on the balance sheets of Indian banks. Banks have not yet found a way to sell these assets, and some need large re-capitalizations," the report says.

Updated Date:

Subscribe to Moneycontrol Pro at ₹499 for the first year. Use code PRO499. Limited period offer. *T&C apply

also read

India-Pakistan 'ceasefire agreement' will achieve nothing beyond excitable commentary in media
India

India-Pakistan 'ceasefire agreement' will achieve nothing beyond excitable commentary in media

The tactical step of a limited agreement that seeks only to calm the borders and lessen shelling and artillery exchanges has been imbued with such lofty goals that the move is likely to get crushed under the weight of expectations

Bangladesh allow Shakib Al Hasan to skip one Test match, ODI series versus Sri Lanka to play for KKR in IPL
First Cricket News

Bangladesh allow Shakib Al Hasan to skip one Test match, ODI series versus Sri Lanka to play for KKR in IPL

Bangladesh are expected to travel to Sri Lanka in April and May for a Test series, before playing them again at home in a three-match one-day international series shortly afterwards.

Imran Khan to seek trust vote from Pakistan’s National Assembly this week following defeat in Senate polls
World

Imran Khan to seek trust vote from Pakistan’s National Assembly this week following defeat in Senate polls

The Pakistan prime minister alleged that some lawmakers from the Tehreek-e-Insaf had been bribed by the Opposition to vote for Yusuf Raza Gilani