In its latest study titled ‘Global Competitiveness Report (2013-14) ‘ by the World Economic Forum, India is seen to be continuing its downward trend and is a painfully ranked 60th of 148 economies. This report holds importance as it contributes to an understanding of key factors that determine economic growth, why some countries are more successful than others in raising income levels and to help policy makers and business leaders with an important tool for formulating improved economic policies.
Here are some key points about India’s performance:
•India continues its downward trend that began in 2009. While it was once ahead of countries like Brazil and South Africa, it now trails these countries by several places and is behind China by a margin of 31 positions, while Russia (64th) has almost closed the gap.
•India continues to be penalised for its very disappointing performance in the basic drivers underpinning competitiveness. The country’s supply of transport, information and communication technologies (ICTs), and energy infrastructure remains largely insufficient and ill-adapted to the needs of the economy, despite the steady improvement that has been made since 2006.
•The Indian business community repeatedly cites infrastructure as the single biggest hindrance to doing business, ahead of corruption and cumbersome bureaucracy. Notwithstanding improvements across the board over the past few years, very poor public health and education levels also remain a prime cause of India’s low productivity.
•Further, the public trust in politicians has been eroding since 2009 and has now reached an all-time low at while bribery remains deeply rooted, added the report.
• Another major concern is the country’s low level of technological readiness. Although businesses adopt new technologies relatively fast the penetration rates of fixed and mobile internet and telephony among the population remain among the lowest in developing Asia.
•With a ratio women-to-men of 0.36 (137th), India has the lowest percentage of working women outside the Arab world.