IMD's World Competitiveness Index 2022: The annual World Competitive Index (WCI) was recently released by the Institute for Management Development (IMD).
- India witnessed the sharpest rise among Asian countries with a six-position jump from 43rd to 37th rank on the annual World Competitive Index (WCI) 2022.
- The rise is largely due to gains in economic performance.
Reasons for better performance in WCI:
- Indian economy witnessed significant improvement in competitiveness, after stable and stagnant five years because of gains in economic performance.
- The domestic economy has experienced a stratospheric rise from 30th to 9th position in a year.
- The labour market is a key sub-factor in the business efficiency parameter, moved up from 15th to 6th, while management practices and business attitudes and values also made major leaps.
- With major improvements in the context of retrospective taxes in 2021, India has restored the trust of the business community.
- Its re-regulation of a number of sectors, including drones, geo-spatial mapping and space has also played a role in the country's stellar performance in the 2022 World Competitiveness Centre (WCR).
- It is also a driving force in the global movement to fight climate change.
- Furthermore, India’s pledge of net zero by 2070 at the COP26 summit in November 2021 is in sync with its strength in environment-related technologies in the 2022 ranking.
Challenges faced by India:
India faces challenges like -
- Managing trade disruptions and energy security,
- Maintaining high GDP growth after covid-19,
- Employment generation,
- Skill development,
- Resource mobilization for infrastructure development, and
- Asset monetization.
What are the top five attractive factors in India’s economy?
The top five attractive factors for business in the Indian economy are -
2)Dynamism of economy
5)High educational level
Countries in the top 10:
- Denmark has been ranked at the top position, among the top 63-nation list. It was ranked at third position in 2021.
- Switzerland dropped from the top position to the second position.
- It is followed by Singapore in the third position, which was ranked at fifth, position.
- Sweden, Hong Kong SAR and Netherlands at fourth, fifth and sixth positions respectively.
- Taiwan at seventh position followed by Finland in the eighth position
- Norway at ninth position with
- USA at 10th position.
Which country has topped annual World Competitive Index 2022?