oppn parties India Should be in Top 10 in Global Competitiveness Index

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  • T20 WC: USA enter Super Eights as their last match against Ireland gets washed out. They were ahead of Pakistan in the points tally. Pakistan were eliminated
  • T20 WC: USA enter Super Eights as their last match against Ireland gets washed out. They were ahead of Pakistan in the points tally. Pakistan were eliminated
  • BJD leader and former Odisha CM Naveen Patnaik said that the criticism of his aide V K Pandian is "regrettable"
  • As more than 20 BJP ministers lost in the recent elections, the new Union cabinet will have many new faces from the party
  • Congress Working committee asks Rahul Gandhi to take up the position of Leader of Opposition in Lok Sabha. Gandhi says he will consider the request
  • RBI governor Shaktikanta Das said that gold was shifted to India as the quantum of RBI gold abroad had increased due to recent purchases
  • Delhi HC rules that submitting photographic evidence of adultery will not be enough, they will have to be proved as authentic in the age of deepfakes
  • A four-member panel will review NEET-UG results of 1563 candidates to check if they were given extra marks for exam time loss
  • Mamata Banerjee says her party will not join Modi's oath-taking ceremony. Also says INDIA bloc might stake claim to form government later
  • K C Tyagi of the JD(U) dropped a bombshell when he said that Nitish Kumar was offered the post of prime minister for switching sides. Opposition leaders rubbished the claim
  • This May was India's hottest month in 36 years says IMD
  • T20 WC: India take on Pakistan today. Telecast to begin at 8pm IST
  • T20 WC: Afghanistan stun New Zealand and Bangladesh win against Sri Lanka
  • T20 World Cup: Australia beat England by 36 runs. This spoils England's chances of making the playoffs as they have lost both their matches till now
  • Heat wave continues in the country as monsoon moves slow
G7 commits to promote India-Europe corridor
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India Should be in Top 10 in Global Competitiveness Index

By Sunil Garodia
First publised on 2016-09-29 12:59:03

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator.
India has risen to the 39th spot on the Global Competitiveness Index compiled by the World Economic Forum (WEF), jumping up 16 places from last year. It had jumped 16 places last year too. In a survey that takes in data from 138 nations, this is a commendable achievement. But given India’s vast resources, legal and bureaucratic machinery, internal connectivity, ports, business acumen, educated workforce and consumer spending prowess, this is still not the ideal situation. Although India has substantially closed the gap with China in two years, being at number 39 should not be a reason to gloat. India should reflect why we are not in the top ten.The Global Competitiveness Index is based on 12 parameters. India needs to do a lot in all the parameters.

The reasons are not far to seek. Widespread corruption has meant that the exploitation of resources have been lopsided. Despite recent efforts to induce transparency in policy decisions, the bureaucracy still swears by red tape. If it can find ways to delay a file, it will. There is no urgency on their part to seek ways to expedite matters. Hence, ease of doing business has not improved perceptibly. Efforts to digitize, despite a clarion call for Digital India, are half-hearted. Without full digitization, there will be no transparency, no innovativeness and no ease of doing business.

Infrastructure development has been bogged down by green clearances and local protests. Land, the biggest hurdle in recent times, has not been made the fulcrum of any new policy on rapid infrastructure and industrial development. While the government took a bold step in enacting a land law, it had to back out in face of opposition protests. Land being a state subject, there has been resistance from the states too. In the absence of a clear policy to acquire land, future competitiveness will always remain in doubt. No entity will invest if it fears that its investments will be blocked by protestors and legal delays.

Investments also remain an area of concern. As The Economic Times has pointed out in an editorial, investments remain sluggish and the current account deficit is now a minuscule decimal point of national income which means that foreign savings are not being utilized to boost domestic investment by the economy.

Further, despite reforms in the banking sector, nothing has been done to rid the banks of the burden of carrying bad debts in the form of sticky loans in their balance sheets. Employment is not rising as the Index of Industrial Production (IIP) has been contracting in successive months. It fell 2.4% in July. Agriculture as percentage of GDP has declined.

True competitiveness will only come through transparency in policy decisions by digitizing processes, cutting down on red tape to facilitate ease of doing business, providing financial muscle to banks, updating labour laws, having a clear land acquisition policy and a stable tax regime. Otherwise Make in India will remain a distant dream. A top ten spot in Global Competitiveness Index can only be achieved if things are made to happen with firm policy decisions.