India slips in competitiveness ranking; US remains at top

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New Delhi, May 15: above 100 dollars per barrel and in places like India and China over-consumption of raw materials, stacking up of currency reserves, need for more managers and emergence of a new middle class.

Emerging powers are accumulating foreign currency reserves at impressive rates: Number one now is China with $1,647 billion, followed by Japan ($1,008 billion), Russia ($502 billion), India ($304 billion), Taiwan ($278 billion) and Korea ($262 billion).

“Shouldn't the presidents of the central banks of these nations be more associated with world monetary affairs? They have the money!,” Garelli said. The report also noted the emergence of a middle class in Asia, Central Europe and Latin America changes the nature of the world economy.

Six hundred million people have reached this status over the past 6 years, while noting that in India, 50 million people are middle class today and they will be 580 million in 2025.

It also named the emergence of a new business model for the poor as a key issue to affect global competitive landscale, saying products are manufactured and sold in places like Africa and Indian subcontinent at a fraction of the price charged elsewhere, and with minimal functionalities.

It pointed out examples of $10 phone, $100 personal computer or $2,500 motor vehicle (being made by Tata in India).