India has ranked 39th in the 2016-17 Global Competitiveness Index (GCI). India has been ranked among the 138 countries in the GCI index, topped by Switzerland. The index was released as part of the World Economic Forum’s (WEF) Global Competitiveness Report for 2016-17.
In the 2016-17 edition of GCI, India has jumped 16 positions, as compared to the 55th position in previous year GCI. India has emerged as the highest rising economy due to improvement in goods market efficiency, business sophistication and innovation. On the back of improved monetary policy and recent reforms towards opening up the economy, India has jumped 16 places in the GCI to 39th spot, the World Economic Forum (WEF) has said. "India climbs, for the second year in a row, to 39th. Its 16-place improvement is the largest this year, thanks to improved monetary and fiscal policies as well as lower oil prices," the WEF said in its Global Competitiveness Report 2016-17.
Its overall competitiveness has increased due to improvements in institutions and infrastructure along with recent reforms such as opening the economy to foreign investors and increasing transparency in the financial system. India’s competitiveness has improved across the board, particularly in innovation (29), goods market efficiency (60) and business sophistication (35) indicators of GCI.
Indian economy boasts the highest growth among G20 economies mainly due to improved monetary and fiscal policies, as well as lower oil prices which has stabilized economy. The Indian economy has stabilised and now boasts of the highest growth among the G-20 countries, the report underlined. However, India still needs remove labour market rigidities and the presence of large, public enterprises especially in the utilities and financial sector make the economy less efficient. The labour market is still bound by rigid regulations and centralised wage determination while infrastructure also remains a bottleneck, it added. The report also states, that there is still a lot needs to be done in the manufacturing sector, which has millions of unprotected and informal workers.
The Global Competitiveness Index measures 12 areas which include institutions, macro-economic environment, infrastructure, health and primary education, higher education and training, labour market efficiency, goods and market efficiency among others. Switzerland, Singapore and the United States remained the world's most competitive economies in the report. A far as the the BRICS Countries are concerned, they achieved the following ranks - China (28th), Russia (43rd), South Africa (47th) and Brazil (81st). Pakistan has been ranked at 122, last amongst its South Asian neighbours.