WEF says India's new government faces the challenge of improving competitiveness and reviving the economy, which is growing at half the rate of 2010
India has slipped to 71st position -- the lowest among BRICS countries -- in an annual global competitiveness list, where Switzerland remains on top of 147 countries.
The annual list, released by Geneva-based World Economic Forum (WEF), comes at a time when the new Indian government has completed 100 days in power and has promised further steps to revive its economy and the ease of doing business in the country.
"Continuing its downward trend and losing 11 places, India ranks 71st. The country's new government faces the challenge of improving competitiveness and reviving the economy, which is growing at half the rate of 2010," WEF said.
According to the report, India's slide in the competitiveness rankings began in 2009, when its economy was still growing at 8.5%.
"Back then, however, India's showing in the GCI was already casting doubt about the sustainability of this growth.” the report said. The fall in the GCI rank of India over the years is shown in the chart below:
"Since then, the country has been struggling to achieve growth of 5%. The country has declined in most areas assessed by the GCI since 2007, most strikingly in institutions, business sophistication, financial market development, and goods market efficiency," it added.
Noting that improving competitiveness would yield huge benefits for India, WEF said it would help re-balance the economy and move the country up the value chain ensuring more solid and stable growth.
"This in turn could result in more employment opportunities for the country's rapidly growing population," it added.
As per the Global Competitiveness Report 2014-15, Switzerland is the most competitive economy, followed by Singapore and United States. The scores of the BRICS countries are shown in the chart below: