WORLD COMPETITIVENESS YEARBOOK (WCY)

• 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.

Important points:

• 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.

It measures the prosperity and competitiveness of countries by examining four factors (334 competitiveness criteria):

1. Economic performance
2. Government efficiency
3. Business efficiency
4. Infrastructure

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 their same spots as last year (9th and 10th, respectively).
• In Comparison to BRICS Nations: Among the 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 its ranking in other parameters such as economic performance (37th), business efficiency (32th) 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 the private companies.
• ndia’s strengths lie in investments in telecoms (1st), mobile telephone costs (1st), ICT services exports (3rd), remuneration in services professions (4th) and terms of trade index (5th).
• India’s performance is the worst in sub-indices such as broadband subscribers (64th), exposure to particulate pollution (64th), human development index (64th), GDP per capita (63rd) and foreign currency reserves per capita (62nd) among others.
• The qualities such as investment in innovation, digitalisation, welfare benefits, diversified economic activities, supportive public policy and leadership, resulting in social cohesion have helped countries better manage the crisis and thus ranking higher in competitiveness.
• Competitive economies succeeded in transitioning to a remote work routine while also allowing remote learning.
• The effectiveness of key public spending, such as public finance, tax policy and business legislation, are seen to relieve the pressure on the economies hit by the Covid-19.

SOURCE: THE HINDU,THE ECONOMIC TIMES,MINT