The Institute of Management Development (IMD) releases the annual World Competitiveness Index. India is on 37th as per World Competitiveness Yearbook (WCY).
About the World Competitiveness Index
- The IMD World Competitiveness Yearbook (WCY), was first published in 1989.
- It is a comprehensive annual report and worldwide reference point on the competitiveness of countries.
- It analyses and ranks countries according to how they manage their competencies to achieve long-term value creation.
- It is based on 336 competitiveness criteria and four factors, namely Economic performance, Government efficiency, Business efficiency, and Infrastructure.
Key Points of the Index
- The World Economic Forum named Denmark, Ireland, and Switzerland as the top three economies among the 64 measured for their global competitiveness.
- India fell three rungs to finish 40th, but it still holds a better position than the consecutive three years between 2019 and 2021 when it was placed 43rd.
- India improved in government efficiency but fared slightly poorer than other countries in business efficiency, infrastructure, and economic performance.
- Specifically, the top three measures that helped India in its score are exchange rate stability, compensation levels, and improvements in pollution control.
Way Forward
- A nation that ensures balance between economic and social progress can enhance its productivity, followed by creating competitiveness and thus, prosperity.
- Therefore, it is necessary to create an environment which not only pushes the businesses to compete successfully in local as well as international markets but ensures that the average citizen’s standard of living also improves.
- Governments need to provide an environment characterized by efficient infrastructures, institutions and policies that encourage sustainable value creation by the enterprises.
Read also:- State Energy Efficiency Index (SEEI) 2021-22 UPSC- Current Affairs
