World Competitiveness Index 2021

World Competitiveness Index 2021

Part of: GS Prelims and  GS -III – Economy 

In news

• According to the World Competitiveness Yearbook (WCY), India maintained 43rd rank on the annual World Competitiveness Index.
  • The World Competitiveness Index is a comprehensive annual report on the competitiveness of countries.
• Compiled by: Institute for Management Development (IMD). 
• It examined the impact of COVID-19 on economies around the world this year. 
• It measures the prosperity and competitiveness of countries by examining four factors (334 competitiveness criteria):
  • Economic performance
  • Government efficiency
  • Business efficiency
  • Infrastructure

Key analysis by the report 

• Many Countries succeeded in transitioning to a remote work routine while also allowing remote learning. 
• Addressing unemployment has been fundamental.

Rankings

• Top countries: Switzerland (1st), Sweden (2nd), Denmark (3rd), the Netherlands (4th).
• The top-performing Asian economies: Singapore (5th), Hong Kong (7th), Taiwan (8th) and China (16th).

India’s Performance

• India has maintained its position for the past three years. 
• This year, it had significant improvements in government efficiency
• India performed better in investments in telecoms (1st), mobile telephone costs (1st), ICT services exports (3rd), remuneration in services professions (4th) and terms of trade index (5th).
• India’s Performance was worst in broadband subscribers (64th), exposure to particulate pollution (64th), human development index (64th), GDP per capita (63rd) 

Recent Steps Taken by India to Increase its Competitiveness 

• Introduction of various Production-Linked Incentive (PLI) Schemes 
• The five pillars of ‘Atmanirbhar Bharat Abhiyan are – Economy, Infrastructure, System, Vibrant Demography and Demand.