In Depth Full List Ranking Global Competitiveness Report 2014–2015 India Rank 71

In Depth Full List Ranking Global Competitiveness Report 2014–2015 India Rank 71



Launched in 1979 by Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, and initially covering 16 countries, the Global Competitiveness Report has evolved over more than three decades into one of the Forum’s greatest and most unique contributions.
It catalyses constructive policy dialogue among policy-makers, business leaders and other members of civil society.

Since 2005, the World Economic Forum has based its competitiveness analysis on the Global
Competitiveness Index (GCI)

India has slipped to the 71st position among 144 countries – the lowest among BRICS nations - in World Economic Forum's annual global competitiveness list.
"Continuing its downward trend and losing 11 places, India ranks 71st.


The Global Competitiveness Report 2014–2015 -

This year’s Report provides an overview of the competitiveness performance of 144 economies,
And thus continues to be the most comprehensive assessment of its kind globally.

Competitiveness is defined as the set of institutions, policies and factors that determine the level of productivity of a country. The level of productivity, in turn, sets the level of prosperity that can be earned by an economy.

The components are grouped into 12 pillars of competitiveness:
First pillar: Institutions
Second pillar: Infrastructure
Third pillar: Macroeconomic environment
Fourth pillar: Health and primary education
Fifth pillar: Higher education and training
Sixth pillar: Goods market efficiency
Seventh pillar: Labor market efficiency
Eighth pillar: Financial market development
Ninth pillar: Technological readiness
Tenth pillar: Market size
Eleventh pillar: Business sophistication
Twelfth pillar: Innovation

Development stages of countries

Stage 1 –
Pillar 1 to 4 –
Key for factor-driven economies

Stage 2 –
Pillar 5 to 10 –
Key for efficiency-driven economies

Stage 3
Pillar 11 and 12 –
Key for innovation-driven economies

Countries are divided into the above three stages of development

Stage 1:  Factor-driven - (37 economies)

Transition from stage 1 to stage 2 (16 economies)

Stage 2: Efficiency-driven (30 economies)

Transition from stage 2 to stage 3 (24 economies

Stage 3: Innovation-driven (37 economies)

As per report currently India is in First stage   factor driven economy

While all of the pillars described above will matter to a certain extent for all economies, it is clear that they will affect different economies in different ways: the best way for Cambodia to improve its competitiveness is not the same as the best way for France to do so. This is
Because Cambodia and France are in different stages of development: as countries move along the development path, wages tend to increase and, in order to sustain this higher income, labor productivity must improve.

The top of the rankings continues to be dominated by highly advanced Western economies and several Asian tigers. For the sixth consecutive year Switzerland leads the top 10, and again this year Singapore ranks as the second-most competitive economy in the world. Overall, the rankings at the top have remained rather stable, although it is worth noting the significant progress made by the United States, which climbs to 3rd place this year, and Japan, which rises three ranks to 6th position.Switzerland tops the Global Competitiveness Index again this year, keeping its 1st place for six years in a row.

Singapore ranks 2nd overall for the fourth consecutive year, owing to an outstanding and stable
Performance across all the dimensions of the GCI. Again this year, Singapore is the only economy to feature in the top 3 in seven out of the 12 pillars; it also appears in the top 10 of two other pillars. Singapore tops the goods market efficiency pillar and places 2nd in the labor market efficiency and financial market development pillars. Furthermore, the city-state boasts
One of the world’s best institutional frameworks (3rd), even though it loses the top spot to New Zealand in that category of the Index. Singapore possesses world-class infrastructure (2nd), with excellent roads, ports, and air transport facilities.

The 2013–2014 edition of the Global Competitiveness Report covered 148 economies.

The Global Competitiveness Index 2014–2015 rankings and 2013–2014 comparisons

Below is the full list

Country - Rank (out of 144) - Score (1–7) - Rank among 2013–2014 economies*
GCI 2013–2014 rank (out of 148) †

Example – Switzerland 1 5.70 1 1

Country = Switzerland
Rank (out of 144)  = 1
Score (1–7) = 5.70
Rank among 2013–2014 economies* = 1
GCI 2013–2014 rank (out of 148) † = 1



1)    Switzerland 1 5.70 1 1
2)    Singapore 2 5.65 2 2
3)    United States 3 5.54 3 5
4)    Finland 4 5.50 4 3
5)    Germany 5 5.49 5 4
6)    Japan 6 5.47 6 9
7)    Hong Kong SAR 7 5.46 7 7
8)    Netherlands 8 5.45 8 8
9)    United Kingdom 9 5.41 9 10
10)    Sweden 10 5.41 10 6
11)    Norway 11 5.35 11 11
12)    United Arab Emirates 12 5.33 12 19
13)    Denmark 13 5.29 13 15
14)    Taiwan, China 14 5.25 14 12
15)    Canada 15 5.24 15 14
16)    Qatar 16 5.24 16 13
17)    New Zealand 17 5.20 17 18
18)    Belgium 18 5.18 18 17
19)    Luxembourg 19 5.17 19 22
20)    Malaysia 20 5.16 20 24
21)    Austria 21 5.16 21 16
22)    Australia 22 5.08 22 21
23)    France 23 5.08 23 23
24)    Saudi Arabia 24 5.06 24 20
25)    Ireland 25 4.98 25 28
26)    Korea, Rep. 26 4.96 26 25
27)    Israel 27 4.95 27 27
28)    China 28 4.89 28 29
29)    Estonia 29 4.71 29 32
30)    Iceland 30 4.71 30 31
31)    Thailand 31 4.66 31 37
32)    Puerto Rico 32 4.64 32 30
33)    Chile 33 4.60 33 34
34)    Indonesia 34 4.57 34 38
35)    Spain 35 4.55 35 35
36)    Portugal 36 4.54 36 51
37)    Czech Republic 37 4.53 37 46
38)    Azerbaijan 38 4.53 38 39
39)    Mauritius 39 4.52 39 45
40)    Kuwait 40 4.51 40 36
41)    Lithuania 41 4.51 41 48
42)    Latvia 42 4.50 42 52
43)    Poland 43 4.48 43 42
44)    Bahrain 44 4.48 44 43
45)    Turkey 45 4.46 45 44
46)    Oman 46 4.46 46 33
47)    Malta 47 4.45 47 41
48)    Panama 48 4.43 48 40
49)    Italy 49 4.42 49 49
50)    Kazakhstan 50 4.42 50 50
51)    Costa Rica 51 4.42 51 54
52)    Philippines 52 4.40 52 59
53)    Russian Federation 53 4.37 53 64
54)    Bulgaria 54 4.37 54 57
55)    Barbados 55 4.36 55 47
56)    South Africa 56 4.35 56 53
57)    Brazil 57 4.34 57 56
58)    Cyprus 58 4.31 58 58
59)    Romania 59 4.30 59 76
60)    Hungary 60 4.28 60 63
61)    Mexico 61 4.27 61 55
62)    Rwanda 62 4.27 62 66
63)    Macedonia, FYR 63 4.26 63 73
64)    Jordan 64 4.25 64 68
65)    Peru 65 4.24 65 61
66)    Colombia 66 4.23 66 69
67)    Montenegro 67 4.23 67 67
68)    Vietnam 68 4.23 68 70
69)    Georgia 69 4.22 69 72
70)    Slovenia 70 4.22 70 62
71)    India 71 4.21 71 60
72)    Morocco 72 4.21 72 77
73)    Sri Lanka 73 4.19 73 65
74)    Botswana 74 4.15 74 74
75)    Slovak Republic 75 4.15 75 78
76)    Ukraine 76 4.14 76 84
77)    Croatia 77 4.13 77 75
78)    Guatemala 78 4.10 78 86
79)    Algeria 79 4.08 79 100
80)    Uruguay 80 4.04 80 85
81)    Greece 81 4.04 81 91
82)    Moldova 82 4.03 82 89
83)    Iran, Islamic Rep. 83 4.03 83 82
84)    El Salvador 84 4.01 84 97
85)    Armenia 85 4.01 85 79
86)    Jamaica 86 3.98 86 94
87)    Tunisia 87 3.96 87 83
88)    Namibia 88 3.96 88 90
89)    Trinidad and Tobago 89 3.95 89 92
90)    Kenya 90 3.93 90 96
91)    Tajikistan 91 3.93 N/A N/A
92)    Seychelles 92 3.91 91 80
93)    Lao PDR 93 3.91 92 81
94)    Serbia 94 3.90 93 101
95)    Cambodia 95 3.89 94 88
96)    Zambia 96 3.86 95 93
97)    Albania 97 3.84 96 95
98)    Mongolia 98 3.83 97 107
99)    Nicaragua 99 3.82 98 99
100)    Honduras 100 3.82 99 111
101)    Dominican Republic 101 3.82 100 105
102)    Nepal 102 3.81 101 117
103)    Bhutan 103 3.80 102 109
104)    Argentina 104 3.79 103 104
105)    Bolivia 105 3.77 104 98
106)    Gabon 106 3.74 105 112
107)    Lesotho 107 3.73 106 123
108)    Kyrgyz Republic 108 3.73 107 121
109)    Bangladesh 109 3.72 108 110
110)    Suriname 110 3.71 109 106
111)    Ghana 111 3.71 110 114
112)    Senegal 112 3.70 111 113
113)    Lebanon 113 3.68 112 103
114)    Cape Verde 114 3.68 113 122
115)    Côte d'Ivoire 115 3.67 114 126
116)    Cameroon 116 3.66 115 115
117)    Guyana 117 3.65 116 102
118)    Ethiopia 118 3.60 117 127
119)    Egypt 119 3.60 118 118
120)    Paraguay 120 3.59 119 119
121)    Tanzania 121 3.57 120 125
122)    Uganda 122 3.56 121 129
123)    Swaziland 123 3.55 122 124
124)    Zimbabwe 124 3.54 123 131
125)    Gambia, the 125 3.53 124 116
126)    Libya 126 3.48 125 108
127)    Nigeria 127 3.44 126 120
128)    Mali 128 3.43 127 135
129)    Pakistan 129 3.42 128 133
130)    Madagascar 130 3.41 129 132
131)    Venezuela 131 3.32 130 134
132)    Malawi 132 3.25 131 136
133)    Mozambique 133 3.24 132 137
134)    Myanmar 134 3.24 133 139
135)    Burkina Faso 135 3.21 134 140
136)    Timor-Leste 136 3.17 135 138
137)    Haiti 137 3.14 136 143
138)    Sierra Leone 138 3.10 137 144
139)    Burundi 139 3.09 138 146
140)    Angola 140 3.04 139 142
141)    Mauritania 141 3.00 140 141
142)    Yemen 142 2.96 141 145
143)    Chad 143 2.85 142 148
144)    Guinea 144 2.79 143 147

The competitiveness landscape in the Asia and the Pacific region remains one of stark contrasts. The region is home to three of the 10 most competitive economies in the world:
Singapore, Japan, and Hong Kong SAR.
A further three economies are featured in the top 20:
Taiwan (China), New Zealand, and Malaysia (20th), which is the best ranked of Emerging and Developing Asian nations.
At 28th, China stands some 40 places ahead of India

Taiwan (China) ranks 14th, dropping two places despite maintaining its score. The third of the Asian Tigers, behind Singapore and Hong Kong SAR, its performance has been very stable over the past six years. Notable strengths include its capacity to innovate (10th, down two), its highly efficient goods markets (11th), its world-class infrastructure (11th), and strong higher
Education (12th). In order to enhance its competitiveness, Taiwan will need to further strengthen its institutional framework (27th), whose quality is undermined by some
Inefficiency within the government (29th) and various forms of corruption (31st), and will also need to address some inefficiencies and rigidities in its labor market (32nd). As elsewhere in Asia, encouraging and facilitating the participation of women in the workforce (89th) would
Contribute to enhancing competitiveness.

India’s competitiveness crisis –

Despite its immense potential and promise, by many accounts India continues to suffer from poverty.

A third of its population still lives in extreme poverty—possibly the highest 

Incidence outside sub-Saharan Africa—and many people still lack access to basic services and opportunities, such as sanitation, healthcare, and quality schooling.

Improving the standards of living of the Indian population will require the country to accelerate its growth.
Yet, since 2011, India has experienced a slowdown. In 2013, its economy grew by a modest 4.4 percent

Improving competitiveness in order to put growth on a more stable footing should therefore be a priority for the new government.

Dropping for the sixth consecutive edition, India ranks 71st (down 11) out of 144 economies in the Global Competitiveness Index (GCI) 2014-2015
It is the lowest ranked among the BRICS economies.

The rank differential with China (28th) has grown from 14 places in 2007 to 43 today; 
while India’s GDP per capita was higher than China’s in 1991, 1 today China is four times richer

This competitiveness divide helps to explain the different trajectories of these two economies.

India’s slide in the competitiveness rankings began in 2009, when its economy was still growing at 8.5 percent (it even grew by 10.3 percent in 2010).

Back then, however, India’s showing in the GCI was already casting doubt about the sustainability of this growth.

Since then, the country has been struggling to achieve growth of 5 percent.
The country has declined in most areas assessed by the GCI since 2007, most strikingly in institutions, business sophistication, financial market development, and goods market efficiency.

Overall, India does best in the more complex areas of the GCI: innovation (49th) and business sophistication (57th). In contrast, it obtains low marks in the more basic and more
Fundamental drivers of competitiveness.

For instance, India ranks 98th on the health and primary education pillar.

The health situation is indeed alarming: infant mortality and malnutrition incidence are among the highest in the world; only 36 percent of the population have access to improved sanitation; and life expectancy is Asia’s second shortest, after Myanmar.

On a more positive note, India is on track to achieve universal primary education, although the quality of primary education remains poor (88th) and it ranks a low 93rd in the higher education and training pillar of the GCI.

Transport and electricity infrastructure are in need of upgrading (87th).

In 2012, a working group appointed by the Planning Commission of India had recommended that a trillion US dollars—or almost 10 percent of India’s GDP be spent on infrastructure by 2017

Given the country’s strained public finances, addressing the infrastructure gap will require very strong participation on the part of private and foreign investors through public-private partnerships.

But for these types of investments to materialize, the institutional framework needs to improve. There are encouraging signs.

India has achieved spectacular progress in various measures of corruption and now ranks 65th.

Red tape seems to be less of an issue than it had been, and government efficiency is equally improving.

However, the overall business environment and market efficiency (95th, down 10 places) are undermined by protectionism, monopolies, and various distortionary measures, including subsidies and administrative barriers to entry and operation.

The World Bank estimated that it takes 12 procedures (130th) and almost a month to register a business (106th).

In addition, it calculated that taxes for a typical registered firm amount, on average, to 63 percent of its profits (130th).

Furthermore, the labor market is inefficient and rigid (112th). 

These factors contribute to the high cost of integrating more businesses into the formal economy. Some estimates find that the informal sector accounts for half of India’s economic output and 90 percent of its employment

It is therefore urgent that the government create the right incentives for businesses to register and contribute their fair share to the provision of public services.

India achieves its lowest rank among the 12 pillars in technological readiness (121st). 

Despite mobile telephony being almost ubiquitous, India is one of the world’s least digitally connected countries. Only 15 percent of Indians access the Internet on a regular basis. 
Broadband Internet,If available at all, remains the privilege of a very few.

India’s knack for frugal innovation should contribute to providing cheap solutions for bridging this digital divide.

The financial resources required for delivering basic services, including sanitation and healthcare, and for improving India’s physical and digital connectivity are considerable.

But India’s fiscal situation remains in disarray, as evidenced by the country’s 101st rank in the
Macroeconomic environment pillar of the GCI.

With the exception of 2007, the central government has consistently run deficits since 2000. Because of the high degree of Informality, its tax base is relatively narrow, representing less than 10 percent of GDP.

In addition, over the past several years India has experienced persistently high, in some years
Near double-digit, inflation, which reached 9.5 percent in 2013.

The Reserve Bank of India is torn between keeping interest rates low to stimulate the faltering economy and tightening monetary policy to stem inflation.

Improving competitiveness will yield India huge benefits. In particular, it will help rebalance the economy and move the country up the value chain so as to ensure more solid and
Stable growth; this in turn could result in more employment opportunities for the country’s rapidly growing population.

Despite the abundance of low-cost labor, India has a very narrow manufacturing base.

Manufacturing accounts for less than 15 percent of India’s GDP.5

 Agriculture represents 18 Percent of output and employs 47 percent of the workforce.

Low productivity in the sector means very low wages and a life of mere subsistence for many.

The services sector accounts for just 28 percent of employment but for 56 percent of the economy. Most services jobs are low-skilled and poorly paid ones, though.
White collar jobs remain rare.

For example, the vibrant business-process outsourcing sector employs 3.1 million workers, or 0.6 percent of India’s 482 million strong labor force (but accounts for 6 percent of GDP).

India needs to create jobs in the “missing middle” for the 610 million youths under 25—half of India’s population—who have recently entered or will soon enter the workforce.

In a parliamentary address in June 2014, President Mukherjee outlined the government’s economic agenda. It envisages building smart cities, establishing world-class industrial zones, and transforming the country into a manufacturing hub.

It remains to be seen whether the newAdministration will succeed in convincing the public opinion, mobilizing the resources, and passing the reforms necessary to achieve this vision.

Full Report consists of 565 pages PDF in depth regarding each pillar and each country

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Thursday, September 04, 2014

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