India has slipped down by one rank to be placed at the 40th position out of 137 countries on the World Economic Forum’s (WEF) Global Competitiveness Index report 2017-18. Further, Pakistan has jumped up seven positions to be ranked 115 as against last year’s 122. However, India continues to top in South Asia, with its highest ever score, WEF said.
Last year, India had jumped 16 positions from the 55th rank and now, has come down one rank. However, India remains the most competitive country in South Asia and the World Economic Forum said that according to the current methodology, India’s score, this year, is the highest ever.
Issued on Tuesday, Global Competitiveness Index ranked a total of 137 economies on the basis of 12 categories called ‘pillars of competitiveness’. The parameters for determining competitiveness include institutions, infrastructure, health and primary education, labour market efficiency, financial market development, and technological readiness, among others.
At 40th position, India’s scores have improved in most pillars of competitiveness, particularly in infrastructure (up by two), higher education and training (up by six), and technological readiness (up by three). In Institutions, India has scored 39th out of 137 economies, 66th in infrastructure, 91st in health and primary education, and 75th in higher education and training. India has ranked 3rd in market size.
Switzerland has ranked the most competitive economy in the world, which is followed by the United States of America. Switzerland has retained the top spot for at least the past six years. Last year, the 2016-17 report ranked Singapore at the second spot and the United States in the third.
About India, the Global Economic Index said, “Among the emerging markets seen as having great potential in the early 2000s, Brazil and Turkey have now lost much of the ground they gained before 2013, but China, India, and Indonesia continue to improve.” It, however, also said that loans, in India, have more than doubled in the past two years.
The report warned about risks from uncertain global economic conditions due to “a widespread failure on the part of leaders and policymakers to put in place reforms necessary to underpin competitiveness”.