Summary
India seems to be doing well in the Global Competitiveness Index as per the report by the World Economic Forum (WEF). The sharp rise of India’s position has been mainly attributed to the Modi effect which refers to the effect brought about by the changes in policy that have been implemented by Prime Minister Narendra Modi ever since he assumed power in 2014 (Bhaskar, 2017) . The 2016 report indicates that India’s position had sharply risen in just two years, surpassing some of the major economies. In fact, the rising rate is so high that the report indicates that India is posing a threat to China having moved to 39 th spot in the world rankings, 16 places higher. This is because India has seen improvements in areas such as business sophistication, innovation, and market efficiency. The report indicates that the country is the fastest-growing of all G20 countries.
However, the report further states that the accomplishments of India are nothing compared to the task that lays ahead. The global position that India occupied in 2014 made it easy for the country to rise fast as it was in a pool in which most countries were not experiencing immense growth. However, it has now joined the Ivy League pool in which climbing the ladder upwards gets difficult. Furthermore, the report states that the rise of India’s Global Competitiveness Index may be as a result of the hype caused by the promises of policy change that Prime Minister Narendra Modi when he assumed office (Jha & Gopalakrishnan, 2019) . WEF reports that the hype may soon diminish and the growth stint may decelerate. Either way, the growth witnessed serves the country right as various sector of the economy have been affected positively. According to the report, India has risen 16 places in terms of how the quality of public institutions rank, 15 places in the transparency of the financial systems in the country, and four places in how open the country is to international trade and foreign investors.
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The report also comments on the downfall of Brazil in the Global Competitiveness Index. The country continued declining having slid 6 placed down, from 48 th to 81 st spot in a span of two years ("The global urban competitiveness report - 2011", 2012) . Brazil declined in each of the 12 pillars that contribute towards the overall rating (Good, 2017) .
Comments
India is certainly a first rising economy that investors should look to invest in. The highly populated country provides the labor, both skilled and unskilled, and a target market that investors can take advantage of. Furthermore, under the leadership of Prime Minister Modi, India has managed to implement a favorable foreign policy that invites investors from all across the world to pump in resources into the country.
My only recommendation would be for the country to continue implanting and actualizing favorable foreign investment policies as they are attractive to foreign investors who are crucial for the economic, social, and political growth of a country. India is supposed to look at how far it has come and subject itself to laws that will help it remain in the G20 group of nations. It could take lessons from South American countries such as Brazil and Venezuela on the mistakes that could lead to an economic downfall of a nation. With this, India could keep implementing policies that will help it stay up.
References
Bhaskar, U. (2017). India improves on WEF’s global competitiveness rankings. Retrieved 30 July 2019, from https://www.livemint.com/Politics/QdQ4zRhlA2GRT0pNSWktiN/India-improves-on-WEFs-global-competitiveness-rankings.html
Good, A. (2017). A Brief Overview of the 2017-2018 Global Competitiveness Report. Retrieved 30 July 2019, from https://globaledge.msu.edu/blog/post/54469/a-brief-overview-of-the-2017-2018-global-competitiveness-report--
Jha, M., & Gopalakrishnan, M. (2019). How PM Modi changed the face of Indian foreign policy | DW | 06.05.2019. Retrieved 30 July 2019, from https://www.dw.com/en/how-pm-modi-changed-the-face-of-indian-foreign-policy/a-48618235
The global urban competitiveness report - 2011. (2012). Choice Reviews Online , 50 (02), 50-0987-50-0987. doi: 10.5860/choice.50-0987
