It’s been two straight years of improved ranking for India in the Global Competitiveness Index of the World Economic Forum (WEF). It rose 16 ranks to 39 in 2016-17 from the 55 in 2015-16. Then too, it had risen 16 ranks from 71 in 2014-15. That’s a huge change from when the NDA government came into power. The country managed to get $40 billion in FDI during 2015-16. The introduction of GST could be a positive in the next year.
While there are many positives, India is still hampered by old issues relating to the total tax rate, number of procedures needed to start a business, import duties and a lower ratio of women in the labour force. It’s not too difficult to tackle some of these. Interestingly, the country is ranked 122 among 138 countries in the business cost of terrorism.