India’s Rank in the Global Competitive Index

As per the latest Global Competitiveness Report 2012-13, brought out by World Economic Forum, a Swiss non-profit foundation based in Geneva, India ranks 59^th amongst 144 economies in the Global Competitiveness Index for 2012-13, as against 56^th position out of 142 economies covered in 2011-12.

The Global Competitiveness Index (GCI) measures the competitive performance of the economies around the world for doing business. It is a composite index that combines three component indices covering 12 different parameters (termed ‘pillars’). The details of the three components along with the weights assigned to them and the pillars are presented in table below:

Components	Weights for India	Pillars
Basic requirements	(60%)	·         Institutions
		·         Infrastructure
		·         Macroeconomic environment
		·         Health and primary education
Efficiency enhancers	(35%)	·         Higher education and training
		·         Goods market efficiency
		·         Labour market efficiency
		·         Financial market development
		·         Technological readiness
		·         Market size
Innovation and sophistication factors	(5%)	·         Business sophistication
		·         Innovation

  

Giving this information in written reply to a question in the Rajya Sabha Sachin Pilot, Minister of Corporate Affairs, said that computation of GCI for the year 2012-13 is based on 113 indicators. As the indicators vary from year to year a comparison from previous years is not feasible. However, India’s performance with a GCI score of 4.32 (on a scale of 1-7) in the year 2012-13 is an improvement over last year score of 4.30. This country has also improved its performance in respect of each individual component of the index.