World Competitiveness Index 2021:
According to the World Competitiveness Yearbook (WCY), India maintained 43rd rank on the annual World Competitiveness Index.
- The World Competitiveness Index is a comprehensive annual report and worldwide reference point on the competitiveness of countries.
- Published by: WCY was first published in 1989 and is compiled by the Institute for Management Development (IMD).
- In 2021, the IMD examined the impact of Covid-19 on economies around the world.
- It provides extensive coverage of 64 economies.
- Factors: It measures the prosperity and competitiveness of countries by examining four factors (334 competitiveness criteria):
- Economic performance
- Government efficiency
- Business efficiency
- Top Global Performers:
- The European countries display regional strength in world competitiveness ranking with Switzerland (1st), Sweden (2nd), Denmark (3rd), the Netherlands (4th).
- The top-performing Asian economies are, in order, Singapore (5th), Hong Kong (7th), Taiwan (8th), and China (16th).
- Singapore was 1st in the 2020 World Competitiveness Index.
- The UAE and the USA remain in the same spots as last year (9th and 10th, respectively).
- In Comparison to BRICS Nations: Among BRICS nations, India ranked second (43rd) after China (16th), followed by Russia (45th), Brazil (57th), and South Africa (62nd).
- Performance on Four Factors: Among the four indices used, India’s ranking in government efficiency increased to 46 from 50 a year ago, while it’s ranking in other parameters such as economic performance (37th), business efficiency (32nd), and infrastructure (49) remained the same.
- Improvements in Government Efficiency: Mostly due to relatively stable public finances. Despite difficulties brought by the pandemic, in 2020, the government deficit stayed at 7%. The Government also provided support and subsidies to private companies.