India ranks 49 among 133 countries in 2009-10 in the global competitiveness index (GCI) prepared by the World Economic Forum (WEF), an improvement of one position from last year. India’s position is a result of mixed performance across 12 categories covered by the GCI.
India has displayed good performance over the past year in business sophistication, innovation and financial market sophistication. However, areas like infrastructure, primary education, health and the fiscal situation dragged India down. The review also stated that bureaucracy, over-regulation and corruption still affect functioning markets and labour markets in particular. India lags all BRIC nations in the index.
India has suffered in the basic requirements index and ranks 101 in the health and education index. The fiscal deficit situation has dragged India to the 96th position in the macroeconomic stability pillar, while poor infrastructure performance has brought it down to 76th position in the transport and infrastructure index. India has performed well in areas of sound financial system, efficient goods market and innovation sectors and ranks in the range of 16-30 in the respective indices.
A survey by PricewaterhouseCoopers (PwC), which took responses from 300 Indian CEOs, revealed that most expect growth to come from better penetration of existing markets, with 58 per cent citing that as their primary opportunity. Most Indian companies said they would be able to achieve growth organically.
Moreover, 42 per cent said the country’s manufacturing sector is becoming more competitive. As many as 74 per cent believed India to have a strong supply of educated and healthy workers and 56 per cent stated a strong entrepreneurial base existed.
Lack of infrastructure, inflation, red tapism and terrorism were cited as risks in our business competitiveness.