India moved up the ranking from 44 in 2015 to 41 in a survey of 61 nations released by IMD’s (International Institute for Management and Development) World Competitiveness Centre. It has been publishing the ranking each year since 1989 and is regarded as the foremost annual assessment of the competitiveness of countries.
The rankings are based on analysis of over 340 criteria. They are derived from four principal factors, which are infrastructure, economic performance, business efficiency and government efficiency. India has improved on overall performance, image and managerial practices, but when it comes to education and health it has to go a long way.
Jose Caballero, a senior economist at the IMD said, “India now ranks 26th in terms of image, 11th in openness and 32nd in managerial practices.” According to him during 2015 and 2016, India’s performance has been mixed. It has made improvements in various aspects like current account balance, its ranking of exchange rate stability, bribery and corruption, government budget surplus/deficit, bureaucracy, tax evasion, ease of doing business, future energy supply, pension funding etc. It still has to make improvements in many other fields.
India has done really well among the BRICS (Brazil, Russia, India, China, and South Africa) economies.
The USA, which was in the top spot from the last three years, has surrendered its status as the world’s most competitive economy. It is overtaken by China Hong Kong and Switzerland, according to the latest rankings.
Professor Arturo Bris, director of the IMD World Competitiveness Centre said, “The common pattern among all of the countries in the top 20 is their focus on business-friendly regulation, physical and intangible infrastructure and inclusive institutions.”
Canada is hurt the worst among the top rankers due to a plunge in commodity prices. It has come down to 10th place, a fall of five places from last year’s ranking and is in the worst position in several years.
The downturn in commodity prices is bound to hit the economy hard and thus, Canada was dragged down in its ranking in several key categories for economic growth.
Jose Caballero, senior economist at the IMD World Competitiveness Centre, however, said, “I think most of the major issues that originated the drop in the ranking are external to Canada, something that is out of the control of policy-makers at the moment.”