India slips one rank in world competitiveness

India slipped one rank, to 32nd position in overall competitiveness among 59 nations, according to the ‘World Competitiveness Rankings’, announced today by the International Institute for Management Development, Lausanne (Switzerland).

The recovery of financial markets pushed the US and Hong Kong to first place, followed by last year’s topper, Singapore, which fell to third spot. In 2010, the US and Hong Kong ranked second and third, respectively.

Sweden jumped to fourth, from sixth in 2010, and Germany came sixth, helped by buoyant exports.

India’s neighbouring competitor, China, also slipped one rank, to 19th and Japan went up one rank to 26th slot, said the business school’s 2011 Yearbook.(THE WORLD COMPETITIVENESS SCOREBOARD 2011)

“Though India’s ranking is below the midway mark, it still did better than Indonesia (37) Philippines (41), Brazil (44) and Russia (49),” said a press release by the National Productivity Council of India.

Sharply different trends were observed in India’s ranking in four major parameters. While the ranking relating to economic performance, government efficiency and infrastructure availability marginally improved, India slipped on business efficiency, which pulled down its overall ranking.

On government efficiency, which includes fiscal management and business legislation, India went up to 29th rank in 2011 from 30th rank in 2010. In economic performance, a macroeconomic evaluation of the domestic economy and related to areas like trade, investments, employment and prices, the position of India improved by two ranks to 18th place.

In the case of infrastructure availability to meet basic, technological, scientific and human resources needs of business, the country improved its position to 50th rank in 2011, from the 54th position last year. This indicates the considerable infrastructure investment of recent years have started showing results, the statement said.

However, on the business efficiency parameter, relating to productivity and management practices, India slipped from 17th rank in 2010 to 22nd rank in 2011. Apart from Hong Kong and Singapore, two other Asian nations, Taiwan and Qatar, came in the top 10 list. Venezuela was the least competitive.

Overall competitiveness of the US was “rescued” by its business efficiency. In more advanced economies (Japan, Belgium, Ireland, Germany) the government lagged in business efficiency. In emerging economies, Brazil and India were struggling, while Russia, South Africa, Chile, Estonia and Indonesia were ahead.

A sound ‘balance’ between government and business efficiency can be found in Hong Kong, Singapore and Australia, it said.