Global Competitiveness Index Current Affairs
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India was placed at 40th spot among 137 countries in World Economic Forum’s (WEF) Global Competitiveness Index (GCI) 2017-18. India has slipped by one position compared to 39th spot in 2016 GCI.
Global Competitiveness Index
WEF’s GCI assesses competitiveness of countries to provide insight into drivers of their productivity and prosperity. GCI scores are calculated on basis of 12 categories called ‘pillars of competitiveness which covers both business and social indicators. It includes pillars such as institutions, infrastructure, health and primary education, labour market efficiency, financial market development, technological readiness and market size.
Key Highlights of 2017 GCI
Top 5 Countries: Switzerland (1st), United States (2nd), Singapore (3rd), Netherlands (4th) and Germany (5th).
BRICS Countries: China (27th), Russia (38th), India (40th), South Africa (61st) and Brazil (80th).
India related facts: India remains most competitive country in South Asia. It has improved across most pillars of competitiveness, particularly infrastructure (66th, up by 2), higher education and training (75th, up by 6), and technological readiness (107th, up by 3) reflecting recent public investments in these areas. The report has lauded India’s efforts in information and communications technology (ICT) sector as it can boost internet economy.
Global Challenges: According to 2017 GCI, there are risks from uncertain global economic conditions. Since 2008 global financial crisis, prospects for sustained economic recovery remain at risk due to widespread failure on part of leaders and policymakers to put in place reforms necessary to underpin competitiveness.
India has been ranked 39th among the 138 countries in the 2016-17 Global Competitiveness Index (GCI).
The index was released as part of the World Economic Forum’s (WEF) Global Competitiveness Report for 2016-17.
- Top 5 Countries: Switzerland (1st), Singapore (2nd), United States (3rd), Netherlands (4th) and Germany (5th).
- BRICS Countries: China (28th), Russia (43rd), South Africa (47th) and Brazil (81st).
- India related facts: In the 2016-17 edition of GCI, India has jumped 16 places compared to 55th position in 2015-16 GCI.
- India has emerged as the highest rising economy due to improvement in goods market efficiency, business sophistication and innovation.
- India’s 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.
- 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.
- India’s competitiveness has improved across the board, particularly in innovation (29), goods market efficiency (60) and business sophistication (35) indicators of GCI.
- 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.
About Global Competitiveness Index (GCI)
- The GCI released by the WEF is one of the major studies which indicate how a country scores in the scale of global competitiveness.
- The index is calculated by aggregating indicators across 12 pillars in the report which covers both business and social indicators.
- These 12 pillars or indicators directly or indirectly impact the competitiveness of the country in the global arena.
- The GCI measures 12 pillars which include institutions, macro-economic environment, infrastructure, health and primary education, higher education and training, labour market efficiency, goods and market efficiency among others.