Lok Sabha Question No. 100 (UNSTARRED), answered on 2019-11-18
Subject: Global Competitiveness Index
Ministry: FINANCE
Asked by: Supriya Sadanand Sule, Sunil Dattatray Tatkare, Amol Ramsing Kolhe, Kuldeep Rai Sharma, Subhash Ramrao Bhamre, A.K.P. Chinraj

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS LOK SABHA UNSTARRED QUESTION NO.100 TO BE ANSWERED ON 18 th  NOVEMBER (MONDAY), 2019 KARTIKA 27, 1941 (SAKA)

## GLOBAL COMPETITIVENESS INDEX

## 100. SHRIMATI SUPRIYA SULE:

SHRI SUNIL DATTATRAY TATKARE: DR. AMOL RAMSING KOLHE: SHRI KULDEEP RAI SHARMA: DR. SUBHASH RAMRAO BHAMRE: SHRI A.K.P. CHINRAJ:

## Will the MINISTER OF FINANCE be pleased to state:

- (a) whether as per latest World Economic Forum's Global Competitiveness Index, India has slipped from 58th rank in 2018 to 68th rank in 2019 among 140 countries;
- (b) if so, the details thereof along with the reasons therefor;
- (c) the criteria adopted by the World Economic Forum to arrive at ranking;
- (d) the  areas/indicators  where  India  ranked  low  and  the  areas/indicators  where  India  has improved its ranking;
- (e) the corrective steps taken by the Government to improve the ranking of India; and
- (f) whether these steps have led to the desired outcome and if not, the reasons therefor?

## ANSWER

## Minister of State (Finance) (ShriAnurag Singh Thakur)

(a) to (f): As  per  the  Global  Competitiveness  Index  (GCI),  2019  in  South  Asian  region India      is  placed  at  68th  position  due  to  faster  improvements  of  several  countries  previously ranked lower.  The  GCI  measures 'national competitiveness' defined as 'the set of institutions, policies and factors that determine the level of productivity'. The exercise involves performance review  of  141  countries  under  four  broad  categories,  viz.  the  enabling  environment,  human capital, markets and innovation ecosystem.  India is ranked 2 nd in shareholder governance and 3 rd in terms of market size and renewable energy regulation. It ranks considerably high in  Corporate

review  of  141  countries  under  four  broad  categories,  viz.  the  enabling  environment,  human capital, markets and innovation ecosystem.  India is ranked 2 nd in shareholder governance and 3 rd in terms of market size and renewable energy regulation. It ranks considerably high in Corporate Governance  (Rank  15 th ),  Macroeconomics  stability  (Rank  43 rd ),  and  Financial  Sector  (Rank 40 th ).  India performed well when it comes to Innovation Capability (35th), well ahead of most emerging  economies  and  on  par  with  several  advanced  economies.    However,    as  per  GCI, India's rank dropped below 100 in Information, communication and technology adoption (Rank 120 th ),  Health  (Rank  110 th ),  Skills  (Rank  107 th ),  Product  Market  (Rank  101st),  Labour Market(Rank 103rd) and Financial System Stability (Rank 103rd).

Government has taken a slew of measures to not only boost the economy but also improve upon the ease of doing business and ease of living with programs such as Digital India, Skill India, Make in India, Ayushman Bharat, simplification of Labour Laws into 4 Labour Codes etc.  The desired  outcome  of  these  various  measures  to  boost  the  economy  will  be  tangible  only  in  the longer run.

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