Explained: Why India slips 10 positions in Global Competitiveness Rankings

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Published: October 12, 2019 12:49:17 AM

While India is finding it difficult to compete with a Vietnam in wooing manufacturing firms moving out of China, the latest slip in rankings in the Global Competitive Index will cause further heartburn.

India was ranked 58 out of 140 countries in the 2018 rankings

While India is finding it difficult to compete with a Vietnam in wooing manufacturing firms moving out of China, the latest slip in rankings in the Global Competitive Index will cause further heartburn. The 2019 global competitiveness rankings released by the World Economic Forum show that the country has slipped 10 ranks, to 68, out of 141 countries from its previous level—India was ranked 58 out of 140 countries in the 2018 rankings.

This is even lower than the 63rd position the country had achieved in the index that was revised a year ago. While India has not slipped much in score—it has a score of 61 against 62 last year—the fall comes on the back of other countries improving much more and faster than India.

So, while India was ranked better than its South Asian counterparts—Sri Lanka (84), Bangladesh (105), Nepal (108) and Pakistan (110)—it was the second-lowest ranked economy amongst the BRICS grouping—Brazil ranked 71.

More important, the rankings indicate that India needs to do better in terms of global integration and structural changes if it is to compete with the likes of Vietnam. Although India was ranked third in terms of market size, it was 131 in terms of trade openness and 103 in labour market.

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