World Competitiveness Index 2022

Context: The IMD World Competitiveness has recently released the World Competitiveness Index 2022.

Key Point: 

• Denmark got the top rank in the recently released World Competitiveness Index 2022. It has moved to the top of the list from the third position last year. 
• Switzerland slipped from the top ranking to the second position, and Singapore regained the third spot from the fifth. 
• Other countries in the Top 10: Sweden (4th), Hong Kong SAR (5th), the Netherlands (6th), Taiwan (7th), Finland (8th), Norway (9th), and the USA (10th).
• Top-performing Asian countries: Singapore (3rd), Hong Kong (5th), Taiwan (7th), China (17th), and Australia (19th). 
• India has recorded the sharpest rise among the Asian economies, with a six-position jump from 43rd to 37th rank, largely due to gains in economic performance. This is largely due to gains in economic performance (from 37th to 28th). The labour market moved up from 15th to 6th, while management practices and business attitudes and values also made major leaps.
• Reasons for better performance in World Competitiveness Index: Its re-regulation of several sectors, including drones, space, and geo-spatial mapping. India is also a driving force in the global movement to fight climate change and Modi’s pledge of net zero by 2070 at the COP26 summit in November 2021. 
• Attractive factors of India’s economy for business: a skilled workforce, cost competitiveness, the dynamism of the economy, high educational level, and open and positive attitudes.
• Challenges before India: managing trade disruptions and energy security, maintaining high GDP growth post the pandemic, skill development and employment generation, asset monetization, and resource mobilization for infrastructure development.