India at #59 among Globally Competitive Nations
Bangalore: Based on the parameters including infrastructure, healthcare, education standards, social security and so on, The Global Competitiveness Report 2012-13, prepared by World Economic Forum, has placed India at the fifty ninth position, which is down by three ranks from previous year. In the year 2009, India, being at No.49, was ahead of Brazil and South Africa; but now trails them by around 10 places and lags behind China by a margin of 30 positions, stated Moneycontrol.com.
Infrastructure, Government Inaction Cripple Indian Economy
As per the Report, India continues to deliver poor performance in the areas that are considered to be the basic factors underpinning competitiveness. The country’s supply of transport, ICT, and energy infrastructure remains crippled and ill-adapted to the needs of the economy. Evidently, Indian business community has criticized the country’s infrastructure as the major obstacle to do business, than corruption and bureaucracy.
Country faces lack of proper reforms and inability of the government, the report said as it estimates that the country’s stands at 106th position based on the public’s trust in politicians. Moreover, the macroeconomic environment (99th position) still has large and repeated public deficits and the highest debt-to-GDP ratio among the BRICS.
Among the BRICS, India is the worst performer on the grounds of social and environment sustainability. According to the Report, India is not providing access to some basic services to many of its citizens. For instance, only 34 percent of the population has access to sanitation, the report said. The unemployment and the helpless job environment coupled with weak official social safety make the country vulnerable to economic shocks. Additionally, numerous other studies have indicated that the percentage of youth unemployment in the country is high. In terms of its environmental sustainability, India has to be concerned over its high agricultural water intensity and significant air pollution.
On a Positive Note
However, in sectors of healthcare and education, having 101st position, the country has showed a slight improvement compared to the 2006 Report. But, according to the report, the low performance in these sectors is the very reason why the nation lags behind in productivity.
Despite facing these challenges, India can rely on a fairly well developed ad sophisticated financial market that can channel the financial resources to good use and on reasonably innovative business ventures; a ‘reversed’ pattern of development. Moreover in the country inflation had returned to single-digit in 2011.
