India ranked as fifth-most resilient economy globally

Thursday, 06 May 2004, 19:30 IST
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MUMBAI: The Swiss-based IMD Management Institute Wednesday rated India as the fifth-most resilient economy globally because of "its ability to adapt to change." The institute's survey also rated Asia's third largest economy the 34th "most competitive economy" in the world. India's new ranking is up 16 places this year and is largely based on "improvements on economic performance and business efficiency," said the survey report. Powered by sharply higher farm output, the Indian economy grew by a dazzling 10.4 percent in the quarter ended December, outstripping China's growth rate and making it one of the most dynamic economies globally. The economy is expected to expand at a rate of 8.1 percent in 2003-04, aided by a rebound in the farm sector, after growing at a sluggish pace for the last several years. According to the IMD Management Institute's survey, India fared well on the economic front because of stability of the domestic economy and prices. Also, it was not seen as being venerable to the global trend of outsourcing as it is a great destination for such relocations, it said. The survey, however, noted that India is not just seen as a great destination for relocations by overseas companies. "People in India are adaptable to change," said Professor Stephen Garelli, author of the survey. "The average working hours and the size of the labour force were also important in the overall high score for business effectiveness. The low costs of skilled labour compares well with the quality of work available in the country," he added. "The high growth rate of eight percent compared to 4.5 percent in the previous years as well as the increase in foreign exchange helped improve the ratings of the country. "The investor abroad has faith in the Indian economy especially in the manufacturing sector." The survey based on responses from government and corporate houses found "considerable room for improvement in government efficiency and infrastructure."
Source: IANS
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