New Delhi: The government on Wednesday was gung-ho over the major jump in India’s competitiveness ranking globally calling it a “consequence of the structural reforms and policy initiatives taken by it in the last two years.”
India has climbed 16 places to the 39th rank on the Global Competitiveness Index prepared by the World Economic Forum (WEF) as improved business sophistication and goods market efficiency pushed its ranking higher.
The jump of 16 places for India from last year’s 55th place is the highest for any economy this year. India is also the second-most competitive among BRICS nations behind neighbouring China, which is ranked at the 28th position.
In a press conference Union finance minister Arun Jaitley termed the jump in India’s ranking as “an extremely positive development” and with reforms like GST, the ranking will only improve.
Mr Jaitley pointed out that India’s rank has steadily improved from 71 in 2014-15 to 39 in the latest report. “With this improvement in its ranking, India has covered a long distance and is well on its way to emerge as a major player in the global economy,” said the finance minister.
Finance ministry said that the development should be viewed as an encouragement for “us to continue with the agenda of reforms which would further streamline economic decision making and help us move up on the index of global competitiveness.”
The government exuded confidence that the country will witness a similar gain in the World Bank’s ease of doing business ranking and it may also prompt a sovereign ratings upgrade.
The report said that India’s “competitiveness has improved across the board, in particular in goods market efficiency, business sophistication, and innovation. Thanks to improved monetary and fiscal policies as well as lower oil prices, the Indian economy has stabilised and now boasts of the highest growth among G20 countries,” the report said.
