India ranks 39th in 2016-17 Global Competitiveness Index

India has been ranked 39th among the 138 countries in the 2016-17 Global Competitiveness Index (GCI).
The index was released as part of the World Economic Forum’s (WEF) Global Competitiveness Report for 2016-17.
Key Facts

• Top 5 Countries: Switzerland (1st), Singapore (2nd), United States (3rd), Netherlands (4th) and Germany (5th).
• BRICS Countries: China (28th), Russia (43rd), South Africa (47th) and Brazil (81st).
• India related facts: In the 2016-17 edition of GCI, India has jumped 16 places compared to 55th position in 2015-16 GCI.
• India has emerged as the highest rising economy due to improvement in goods market efficiency, business sophistication and innovation.
• India’s overall competitiveness has increased due to improvements in institutions and infrastructure along with recent reforms such as opening the economy to foreign investors and increasing transparency in the financial system.
• Indian economy boasts the highest growth among G20 economies mainly due to improved monetary and fiscal policies, as well as lower oil prices which has stabilized economy.
• India’s competitiveness has improved across the board, particularly in innovation (29), goods market efficiency (60) and business sophistication (35) indicators of GCI.
• India still needs remove labour market rigidities and the presence of large, public enterprises especially in the utilities and financial sector make the economy less efficient.

About Global Competitiveness Index (GCI)

• The GCI released by the WEF is one of the major studies which indicate how a country scores in the scale of global competitiveness.
• The index is calculated by aggregating indicators across 12 pillars in the report which covers both business and social indicators.
• These 12 pillars or indicators directly or indirectly impact the competitiveness of the country in the global arena.
• The GCI measures 12 pillars which include institutions, macro-economic environment, infrastructure, health and primary education, higher education and training, labour market efficiency, goods and market efficiency among others.

Month: Current Affairs - September, 2016