Skip to main content

Despite 16 point "jump" in India's competitiveness, it is very difficult to start business in India: WEF

By Our Representative
Even as pointing out that, after five years of decline, India has “jumped” 16 ranks to 55th place in global competitive index, the World Economic Forum in its new report has said the situation on the macroeconomic front “remains worrisome.” While pointing out that India is the third biggest market in the world, up for grabs for global investors, the report finds the situation particularly bad on the social front, especially health and education.
The report, titled “Global Competitive Report 2015-16”, gives full mark to the “momentum initiated by the election of Narendra Modi, whose pro-business, pro-growth, and anti-corruption stance”, though at the same time underlines, “Business leaders still consider corruption to be the biggest obstacle to doing business in the country.”
While India may have jumped 16 places in the competitive index, the WEF the ranking at 55th of 140 countries, as against the 71st position in 2014-15, is till not good enough – after all, despite the “massive jump”, which follows five years of a decline on the list, India still ranks seven notches lower than it did in 2007, when the UPA government was strong and in power.
While agreeing that “inflation eased to 6 percent in 2014, down from near double-digit levels the previous year”, the report says, issues of “technological readiness” particularly need attention. India remaining “one of the least digitally connected countries in the world (120th, up one)”, it says, adding, “Fewer than one in five Indians access the Internet on a regular basis, and fewer than two in five are estimated to own even a basic cell phone.”
The report ranks India 114th on infant mortality rate (41.4 per 1000), one of the worst, out of 140 countries surveyed. It ranks India 107th in live expectancy at 66.5 years. Ranking 105th, the report states, there was 68.5 per cent of gross enrollment at the secondary level schooling. Then, India ranks No 100th in Internet access in schools.
Coming to other areas, the report says India ranks No 120th in flexibility of wage determination; 132nd in women in labour force, one of the wost the world; 102nd in the availability of latest technology; 102nd in firm-level technology absorption; 107th in individuals using Internet, and so on.
It is not just in the social sector that India remains a poor performer; it is equally poor in allowing businesses to start. Thus, the report finds that in number of procedures to start a business, India ranks No 129, in number of days to start a business it ranks No 110, in trade tariff as percentage of duty it ranks No 124, and in imports as a percentage of gross domestic product, it ranks No 116 .
The report has ranked Switzerland No 1, followed by Singapore, United States, Germany and the Netherlands. Among the BRICS nations, the report ranks China 28th, Russia 45th (up from 53rd a year ago), South Africa 49th (up from 46th a year ago), and Brazil 75th (down from 57th a year ago).
The Global Competitiveness Report 2015–2016, the 36th edition in the series, the index combines 114 indicators that capture concepts that matter for productivity. These indicators are grouped into 12 pillars: institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labor market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation.
These are in turn organized into three subindexes, in line with three main stages of development: basic requirements, efficiency enhancers, and innovation and sophistication factors”, the report says, adding, “The three subindexes are given different weights in the calculation of the overall index, depending on each economy’s stage of development, as proxied by its GDP per capita and the share of exports represented by raw materials”, the report says.
Pointing towards the reasons why why it looked into health and primary education, the report says, “A healthy workforce is vital to a country’s competitiveness and productivity. Workers who are ill cannot function to their potential and will be less productive. Poor health leads to significant costs to business, as sick workers are often absent or operate at lower levels of efficiency. Investment in the provision of health services is thus critical for clear economic, as well as moral, considerations.”

Comments

TRENDING

It's now official: Developed Gujarat's regular, casual workers earn less than 19 top states

By Rajiv Shah
Though not as low as state chief minister Vijay Rupani claims it to be (0.9%), Gujarat’s unemployment rate, at least as reflected in a recent report released by the Government of India, is 4.8%, lower than the national average, 6%. Yet, ironically, the same report, released soon after the Lok Sabha polls came to an end in May 2019, brings to light an even grimmer reality: Lower wages in "model" and "developed" Gujarat compared to virtually the whole of India, including the so-called Bimaru states.

Amaravati: World Bank refusing to share public grievances on Land Pooling Scheme

By Our Representative
A new report, prepared by the advocacy group Centre for Financial Accountability (CFA), New Delhi, has taken strong exception to the World Bank refusing to share its independent assessment of the Land Pooling Scheme (LPS), floated by the Andhra Pradesh government in order to build the new capital.

Telangana govt proposes to give unfettered powers to forest officials, 'help' corporates

By Dr Palla Trinadha Rao*
The Telangana Government is contemplating to replace the Telangana Forest Act 1967 with a new law - the Telangana Forest Act (TFA) 2019, trampling the rights of adivasis ensured under the Scheduled Tribes and other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (FRA Act 2006) and Panchayats Extension to Schedule Area (PESA) Act 1996 both of which are central acts.

British companies export 'deadly' asbestos to India, other countries from offshore offices

By Rajiv Shah
“The Sunday Times”, which forms part of the powerful British daily, “The Times”, has raised the alarm that though the “deadly” asbestos is banned in Britain, companies registered in United Kingdom, and operating from other countries, “are involved in shipping it to developing nations”, especially India. India, Brazil, Russia and China account for almost 80% of the asbestos consumed globally every year, it adds.

RSS, Hindu Mahasabha were 'subservient' to British masters: Nagpur varsity VC told

Counterview Desk
Well-known political scientist Shamsul Islam, associate professor (retired), University of Delhi, in an open letter to the vice-chancellor of the Rashtrasant Tukadoji Maharaj Nagpur University, Dr Siddharthavinayaka P Kane, has taken strong exception to the varsity decision to include RSS’ “role” in nation building in the syllabus of the BA (history) course, citing instances to say that the RSS ever since its birth in 1925 with its Hindutva allies like Hindu Mahasabha led by VD Savarkar worked overtime to “betray the glorious anti-colonial freedom struggle”.

Beijing-based infrastructure bank 'funding' India's environmentally risky projects

By Our Representative
A new civil society note has questioned the operations of the Beijing-based Asian Infrastructure Investment Bank (AIIB), a multilateral development bank that aims to support the building of infrastructure in the Asia-Pacific region, seeking to fund projects in India through the Government of India’s National Infrastructure Investment Fund (NIIF), calling it “a risky venture”.

Govt of India 'lying': MGNREGA budget reduced by Rs 1,084 crore in 2019-20

Counterview Desk
NREGA Sangharsh Morcha, a well-known advocacy group for the rural jobs guarantee scheme, under implementation since 2005, has said that the statement by the Rural Development Minister has a made a mockery of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) on the floor of Parliament, revealing the ruling BJP’s “anti-worker and anti-poor bias”.

Include all workers exposed to silica dust in anti-TB programme: Govt of India told

Counterview Desk
In a letter, sponsored by well-known civil rights organization, Occupational & Environmental Health Network of India and signed by more than 60 professionals and activists*, Dr Harsh Vardhan, Union Minister of Health and Family Welfare, Government of India, has been told that Indian policy makers shouldn't just acknowledge higher TB risk to mine and stone crusher workers, but also “other silica-exposed workers”.

Universal healthcare? India lacks provisions to 'fight' non-communicable diseases

By Moin Qazi*
Universal health coverage (UHC) -- ensuring that all people receive proper and adequate health care without suffering financial hardship -- is an integral part of achieving the Sustainable Development Goals. It enables countries to make the most of their strongest asset: human capital.

Govt of India seeks to 'subvert' autonomy of adjudicating authorities: RTI amendment

Counterview Desk
India's independent Right to Information watchdog, The National Campaign for Peoples’ Right to Information (NCPRI), in a statement, has said that the Government of India’s proposed amendments to the RTI Act to empower the Centre to unilaterally decide the tenure, salary, allowances and other terms of service of Information Commissioners at the Centre and States “seriously undermine” the law.