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World Competitiveness Index 2021

World Competitiveness Index 2021

Why in news?

  • According to the World Competitiveness Yearbook (WCY), India maintained 43rd rank on the annual World Competitiveness Index.
  • The World Competitiveness Index is a comprehensive annual report and worldwide reference point on the competitiveness of countries.

About the report

  • Compiled by: Institute for Management Development (IMD).
  • It examined the impact of COVID-19 on economies around the world this year.
  • It measures the prosperity and competitiveness of countries by examining four factors (334 competitiveness criteria):
    • Economic performance
    • Government efficiency
    • Business efficiency
    • Infrastructure

Key findings of the report

  • The report notes that qualities such as investment in innovation, digitalisation, welfare benefits and leadership, resulting in social cohesion have helped countries better weather the crisis and thus ranked higher in competitiveness.
  • The top-performing economies are characterised by varying degrees of investment in innovation, supportive public policy and diversified economic activities.
  • The report stated that strength in these areas prior to the pandemic allowed these economies to address the economic implications of the crisis more effectively.
  • Further, it said that the competitive economies succeeded in transitioning to a remote work routine while also allowing remote learning. It added that addressing unemployment has been fundamental,
  • The report also pointed out that the countries that ensured the effectiveness of key public spending, such as public finance, tax policy and business legislation, are seen as essential policies to relieve the pressure on the economies hit by COVID-19.

Performance of other countries

  • The European countries display regional strength in world competitiveness ranking with Switzerland (1st), Sweden (2nd), Denmark (3rd), the Netherlands (4th).
  • The top-performing Asian economies are, in order, Singapore (5th), Hong Kong (7th), Taiwan (8th) and China (16th).                      World Competitiveness Index 2021
  • The UAE and the USA remain in their same spots as last year (9th and 10th, respectively).

India’s Performance

  • India has maintained its position for the past three years.
  • This year, it had significant improvements in government efficiency
  • India performed better in investments in telecoms (1st), mobile telephone costs (1st), ICT services exports (3rd), remuneration in services professions (4th) and terms of trade index (5th).
  • India’s Performance was worst in broadband subscribers (64th), exposure to particulate pollution (64th), human development index (64th), GDP per capita (63rd)

Recent Steps Taken by India to Increase its Competitiveness

  • The government has introduced the Production-Linked Incentive (PLI) Scheme in various sectors for enhancing India’s manufacturing capabilities and exports.
  • The five pillars of ‘Atmanirbhar Bharat Abhiyan (or Self-reliant India Mission)’ are – Economy, Infrastructure, System, Vibrant Demography and Demand.

ALSO READ : https://www.brainyias.com/global-hunger-index-2020/

Mussoorie Times

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