INDIAN INSTITUE OF MANAGEMENT
TIRUCHIRAPPALLI
INDIAN ECONOMY AND POLICY
ASSIGNMENT – 1 (B)
“COMPETITIVENESS AMONG GLOBAL ECONOMIES”
Submitted To:
Prof. Saumen Majumdar
Submitted By:
Anand Kumar
1801009
Section-A
Pick the same nations as the HA 1A exercise. Go to their individual country
pages and then compare India with the others across the pillars cited in the
report. Comment on how far India needs to catch up on various
characteristics and what clear lessons India needs to take to reach to the top.
The four countries taken in the previous exercise were India, United Kingdom, China and Spain.
In the global competitiveness list the rank of the countries are:
COUNTIRES
RANK OUT OF 140
RATINGS
INDIA
55
4.3
U.K.
10
5.4
CHINA
28
4.9
SPAIN
33
4.6
India, with a score of 4.31 ranks 55 among the various nations of the world, which have been
surveyed (140).
The various parameters of competitiveness have been listed below as follows:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Institutions
Infrastructure
Macro-economic Environment
Health and primary Education
Higher education and training
Goods market efficiency
Labor market efficiency
Financial market development
Technological Readiness
Market size
Business Sophistication
Innovation
The countries are ranked based on the 12 parameters or pillars of competitiveness. We now
compare India’s score on each of these Pillars vis-a-vis the emerging competitor economy
(China) and other countries like UK and Spain. We find the results as shown below (Ranks are out
of 140):
PARAMETERS
INDIA
CHINA
SPAIN
60
UNITED
KINGDOM
14
Institutions
Infrastructure
Macro-economic
Health and
primary
education
51
65
81
9
39
10
91
108
8
116
84
18
44
32
Higher education
and training
Goods market
efficiency
Labor market
efficiency
Financial market
Technological
Readiness
Market Size
Business
sophistication
Innovation
90
18
68
29
91
12
58
62
103
5
37
92
53
16
54
77
120
3
74
25
3
9
1
15
52
6
38
31
42
12
31
37
In these mentioned parameters the above countries are ranked as following:
RANKING OF DIFFERENT COUNTRIES ON
VARIOUS PARAMETERS
140
120
100
80
60
40
20
0
INDIA
UK
CHINA
SPAIN
The ratings of the countries on the parameters are:
RATINGS OF THE COUNTRY
8
7
6
5
4
3
2
1
0
INDIA
UK
CHINA
SPAIN
ROAD MAP for India
PARAMETERS
Institutions
Infrastructure
Macroeconomic
Health and
primary
education
SOLUTIONS
Public and Private institutions need improvement. India has been showing
improvement trend, but needs attention too
Electricity supply is a bottleneck for India. Road and Railway transport
networks are moderately good. Rural and Urban Electrification
programme under the Government schemes of PM Modi needs further
attention
After 5 years of decline, India under PM Modi has benefitted due to
reduction of corruption, fiscal deficit and inflation, but still has a long
way to go.
Primary Education and quality of health had been worrisome. From 2007
onwards, new AIIMS type World Class health institutions are being set up in
every state to provide affordable and quality healthcare to people.
Higher
education and
training
Goods market
efficiency
Labor market
efficiency
Financial
market
Technological
Readiness
Market Size
Business
sophistication
Innovation
Job training and quality of education is improving due to opening of
many Central Universities, IITs, NITs and IIMs. But still, it has to be
made more accessible and affordable to people by strengthening primary
education services.
Disinvestment, FDIs and Privatization may be considered as options to
increase competition among industries to improve goods market
efficiency.
Concurrent Labour Laws need to be modified to allow competitiveness
among labour. Talent utilization should also be focussed upon
efficiently by giving job opportunities aligned to the specialization of
the labour.
Efficiency is moderately good. Trustworthiness needs to be
increased by eliminating corruption, which is currently undertaken
by PM Modi and his Government.
This is a serious roadblock for India’s competitiveness. India needs to
offer digital connectivity to all of its people. Other countries perform very
well in offering digital and internet connectivity to increase ease of doing
business. Recently the Government Schemes of Digital India and Aadhar
based Financial transactions and measures like Demonetization and
Cashless Economy are helping the people move towards digital economy.
An advantage for India
Moderately good
Recent advancements in Government sponsored research and development
spending and hiring more research and doctoral graduates is a good sign.
However, India needs to increase GDP spends on R&D to above 3.5% from
0.85%. Japan spends about 3.5%, China spends 2.1% and Switzerland spends
2.9% of their GDP on R&D. Recently PM Modi Government set a target of
spending 2% on GDP on R&D.