Topics covered:
- Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.
IMD Competitiveness Rankings
What to study?
For prelims: about the World Competitiveness Rankings- features, criteria and key findings.
For mains: India’s relative performance and measures needed to boost the competitiveness in the country.
Context: The 2019 edition of the International Institute for Management Development (IMD) Business School World Competitiveness Rankings has been released.
About IMD World Competitiveness Rankings:
- started in 1989, the report ranks 63 economies on 235 indicators which are incorporated from each of these economies.
- The indicators are used to evaluate country’s ability to foster an environment where enterprises can achieve desirable sustainable growth, generate employment and increase its citizen’s welfare.
- IMD takes into account a wide range of statistics and hard data such as unemployment, GDP and government spending on health and education as well as soft data from an international business executive opinion survey on topics such as social cohesion, globalisation and corruption.
The economies are judged in four categories:
- Economic Performance
- Infrastructure
- Government Efficiency
- Business Efficiency.
Performance of India:
- India has moved up one place to rank 43rd (Previously: 44th position in 2018, 45th in 2017 and 41st in 2016.)
- This improved rank is result of India’s robust economic growth, a large labour force and its huge market size.
Global findings:
- topped by Singapore. It has grabbed top position for the first time in nine years. In 2018 it stood at third rank.
- Hong Kong Special Administrative Region (SAR) has held onto its second position same as last year.
- The US slipped to the third place.
- Asia-Pacific region has emerged as a global beacon with 11 out of 14 economies either improved or holded onto their ground.
Sources: the Hindu.
