India’s Rank in the Global Competitive Index

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As per the latest Global Competitiveness Report 2012-13, brought out by World Economic Forum, a Swiss non-profit foundation based in Geneva, India ranks 59th amongst 144 economies in the Global Competitiveness Index for 2012-13, as against 56th position out of 142 economies covered in 2011-12.

The Global Competitiveness Index (GCI) measures the competitive performance of the economies around the world for doing business. It is a composite index that combines three component indices covering 12 different parameters (termed ‘pillars’). The details of the three components along with the weights assigned to them and the pillars are presented in table below:

Components Weights for India Pillars
Basic requirements (60%) Institutions
Macroeconomic environment
Health and primary education
Efficiency enhancers (35%) Higher education and training
Goods market efficiency
Labour market efficiency
Financial market development
Technological readiness
Market size
Innovation and sophistication factors (5%) Business sophistication

Giving this information in written reply to a question in the Rajya Sabha today, Shri Sachin Pilot, Minister of Corporate Affairs, said that computation of GCI for the year 2012-13 is based on 113 indicators. As the indicators vary from year to year a comparison from previous years is not feasible. However, India’s performance with a GCI score of 4.32 (on a scale of 1-7) in the year 2012-13 is an improvement over last year score of 4.30. This country has also improved its performance in respect of each individual component of the index.

In the meanwhile, the Ministry of Corporate Affairs has constituted a Committee for Reforming the Regulatory Environment for Doing Business in India under the chairmanship of Shri M. Damodaran with the objective of making an in-depth study into the entire gamut of regulatory framework and come out with a detailed road-map for improving the business climate in the country that would help improve India’s competitiveness.