Business Magazine

GCR Out! Switzerland Shines, India Whines.

By Teenagesaint @teenage_baba

competing, eh?

Switzerland is the most competitive economy according to the annual Global Competitiveness Report (GCR) of the World Economic Forum (WEF). Improvement in the ranks of countries like China, Indonesia, Vietnam and Sri Lanka have resulted in increasing the overall competitiveness of Asia. China has been ranked 26th while Singapore stands 2nd. India’s position has fallen from 51 to 56 out of 142 countries.

The GCR suggests that India’s accomplishments in the supply of transport, ICT, and energy infrastructure, which are the basic foundation of  competitiveness, are insufficient to improve businesses (89th). They realise Indian infrastructure as a barrier for the country’s business. Though the improvement can’t be denied but the low rank indicates that its rate is slower in comparison to other countries. The report also draws an unsatisfactory picture of India’s health and basic education (101st).

The other two dimensions comprising the basic requirements component of the GCI (Global Competitiveness Index) i.e the country’s institutions and macroeconomic environments, have been dismal as well. Lack of reforms and the apparent inability of the government to provide a more conducive environment for business are said to be responsible for this. India position in corruption fuels this  displeasure (99th).

The  high debt-to-GDP ratio, the large and repeated public deficit and the high inflation rate of around 10% complicates India’s macroeconomic environment rated at 105.

However, it’s not all bleak in India’s competitiveness index. The reports states that India’s positive strengths are in the more advanced and complex drivers of competitiveness. India is ranked 21st as a well-developed financial market that can channel financial resources to good use.In the sophisticated, and innovative business index India holds 43rd and 38th position respectively. The huge domestic markets and the ability to attract investors earns India some Brownie Points as well.

Though China has many credits to it such as, its macroeconomic situation is at position 10 despite high inflation, it is one of the world’s least indebted countries and boasts of a savings rate of 53% of GDP and it is positioned 32nd in terms of health and basic education. But, through the past three years it has become less safe for the business community which necessitates greater costs for protection against crime and violence.

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