Thierry Geiger of the World Economic Forum says India needs to improve its basic drivers of competitiveness if it wants to sustain current levels of growth
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In the India report, which was prepared by Thierry Geiger and Sushant Rao of the forum in collaboration with PricewaterhouseCoopers and Confederation of Indian Industry, the good news is India’s ranking moved by one place over the previous year to 49th of 133 countries studied in the Global Competitiveness Index 2009-10. The bothersome conclusions of the report are that the India’s competitiveness sits on a weak foundation. For a country in its stage of economic development, India’s ranking in basics such as primary education, health and sanitation are low.
India’s ranking in areas more sophisticated such as banking and business innovation are far better than what one might expect in country with its per capita income. Geiger described it as the two-Indias situation, where a relatively sophisticated part coexists with a part, which ranks close to the bottom on key counts. The forum’s report also indicated Indian CEOs are optimistic about the future and seem unfazed by the fallout of last year’s global financial crisis. Their optimism is not entirely in sync with some of the conclusions in report, which has taken a longer term view.
India’s ranking on key measures of competitiveness are presented along with the ranking of some other countries are presented from the India Competitiveness Review 2009.