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India has slipped three ranks on the latest world competitiveness ranking released by the International Institute for Management Development (IMD). The country ranked 40th this year– which is better than the 43rd rank in 2019-21. According to the IMD’s World Competitiveness Centre (WCC) report, the government’s efficiency has increased but still lagging in business efficiency infrastructure and economic performance.
Meanwhile, the report underscored the challenges that the country may face in the current year.
It summarised sustaining high GDP growth, managing financial market volatility, and controlling inflation and the fiscal deficit would be the challenging points for the Modi government.
TOP 3 countries
Denmark, Ireland and Switzerland have been named the top three among 64 economies measured for their global competitiveness in the 2023 IMD World Competitiveness Ranking, published by the World Competitiveness Center for the 35th consecutive year.
Denmark maintained its grip on first place from last year when it enjoyed a momentous inaugural rise to the top, Ireland made a remarkable leap from 11th to take second place, and Switzerland held its nerve in third, after dropping from second place in 2022 and first place in 2021. All three are small economies that make good use of their access to markets and trading partners – as does Singapore, which came fourth.
Factors that decide the ranking
Denmark’s top position is based on its continuous achievements across all four competitiveness factors measured. It remains first in business efficiency and second in infrastructure, and shows slightly improved results in government efficiency, going to fifth from sixth. Another factor measured in the ranking is economic performance. Ireland’s sharp rise is largely the result of its stellar performance in this factor, where it rose from seventh to first.
Switzerland retains third place thanks to its strong performance across all competitiveness factors measured. It remains first for government efficiency and infrastructure, ranks seventh in business efficiency (a decline from fourth), and improves in economic performance (up to 18th from 30th).
“A country’s ability to generate prosperity for its people is a key determiner of success. It’s not what China does yet and it’s not what the US even does fully yet”, said IMD Professor Arturo Bris, Director of the WCC.
Why WCC ranking is considered crucial?
The ranking is a valuable tool for evaluating highly contrasting business environments, supporting international investment decisions, and for assessing the impact of various public policies. It serves managers and policymakers alike and is an indicator of the quality of life in each country it assesses, for which it depends on the support of a network of 57 local Partner Institutes.
It is based on a mixture of hard data – 164 competitiveness criteria selected as a result of comprehensive research using economic literature, international, national, and regional sources, plus feedback from the business community, government agencies, and academics – and 92 survey questions answered by 6,400 senior executives.
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