How the Global Competitiveness Index decides the competitiveness of a developing country like India? Examine in the light of the current index and paradigms in Indian Economy.
The Global Competitiveness Report is a report that is published by the World Economic Forum on an annual basis. Since 2004, the Report ranks countries based on their Global Competitiveness. The report integrates the macroeconomic and the business aspects of competitiveness in a single presentation. The ability of a country to provide quality enrichment to the population is decided in the report.
The report consists of twelve pillars i.e. institutions, good health, primary education, ability to harness existing technology, stable macroeconomic framework, developed financial markets, efficient labor markets, efficient goods markets, higher education and training, production of new and different goods using the most sophisticated production processes, domestic and international market size, appropriate infrastructure, innovation.
India and the index
As per the latest data, India ranked 68th in the global competitiveness index in 2019. It is one of the worst-performing nations among the members of BRICS along with Brazil. Such a downfall is caused by the introduction of limited ICT (information, communications, and technology), poor health conditions, and low life expectancy with the 109th rank out of 141 countries.
- India needs to grow its skills base
- Trade openness for efficient product market efficiency.
- Protection of worker rights.
- Proper labor market policies.
- Improvement of women participation in the workforce which ratio is currently 0.26 to the male workers.
Though the condition of India has degraded still there is a scope of improvement in many fields like the integration of economic policies by focusing on infrastructure, skills, research, and development; strong innovation capability; proper fiscal policy and public incentives for research and development, improvement of the skills base of the workforce, development of new infrastructure and integrate new technologies, etc.