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View Full Version : India's economic competitiveness rises, America's goes down



dndeswal
September 27th, 2006, 10:00 PM
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Good news: A recent survey says Indian economy’s competitiveness has risen because of quality of its scientific research. China’s has slightly gone down. USA’s position has also reportedly shown a slide while Switzerland is now the most competitive economy. The following article seems interesting.

U.S. slips to 6th in world rankings
Bloomberg News
Published: September 26, 2006

(International Herald Tribune) : (http://www.iht.com/articles/2006/09/26/business/compete.php (http://www.iht.com/articles/2006/09/26/business/compete.php))

PARIS The United States lost its position as the world's most competitive economy to Switzerland as budget and trade deficits prompted a slide to sixth in the World Economic Forum's annual rankings.

Switzerland moved up from fourth place last year while Finland, Sweden, Denmark and Singapore all overtook the United States. Japan, Germany, the Netherlands and Britain round out the Top 10 in the study of 125 countries by the forum, based in Geneva.

The decline in U.S. competitiveness adds to questions about the outlook for the world's largest economy as economists at J.P. Morgan Chase suggest its potential for growing without inflation is fading and as the expansion shows signs of slowing.

"The U.S. has now been running twin deficits for many years and there is an increasing concern that they are creating a vulnerability in the economy," Augusto Lopez-Claros, the forum's chief economist, said during an interview.

Switzerland, home to companies like Nestlé and Novartis, topped the table because of its reputation for innovation, research and development and its scientific infrastructure, the forum said. It added that Scandinavian economies performed well for similar reasons.

While the United States remained the best country to do business in, it ranked 69th for its economic environment. The economy is set to post a fifth consecutive annual budget deficit and its current-account deficit widened more than forecast last quarter to the second- largest on record.

The country's overall competitiveness was also undermined by increasing doubts about the effectiveness and trustworthiness of its political leaders, with the government's delayed reaction to Hurricane Katrina damaging the public's confidence, the forum said. Weaknesses were also detected in primary education and health care, with infant mortality and HIV/AIDS more prevalent than in other rich economies.

Among the Group of 7 industrialized countries, Germany won points for its judicial system, with Britain excelling in the efficiency of its markets. Canada and France ranked 16th and 18th respectively, lower than last year, while Italy slipped four notches to 42nd because of its poor fiscal position.

Within the 25-member European Union, Poland was the worst performer at 48th. Asian economies led by Singapore were praised for their infrastructure, well-educated work force and efficient markets. Japan was urged to improve its public finances and markets.

India climbed two places to 42nd because of the quality of its scientific research, while China fell to 54th from 48th because school enrollment remains low by international standards.
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rkumar
September 27th, 2006, 10:49 PM
India's ranking will improve significantly if higher education and infrastructure are improved. Indian government is very much aware of this and we should hope for better rankings in future. Let us hope we climb to number 30 in next 5 years.

RK^2

aabhisheksirohi
September 29th, 2006, 01:55 AM
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while Italy slipped four notches to 42nd because of its poor fiscal position.

India climbed two places to 42nd because of the quality of its scientific research,






India's ranking will improve significantly if higher education and infrastructure are improved. Indian government is very much aware of this and we should hope for better rankings in future. Let us hope we climb to number 30 in next 5 years.

RK^2

How can two countries be on same position??

Secondly, we should not feel happy or proud that India climbs and United States slips in ranking as per World Economic Forum.

There are certain criteria and levels based on which WEF judges the country.

Here are those :-

1) Institutions
2) Infrastructure
3) Macroeconomy
4) Health and primary education
5) Higher education and training
6) Market efficiency
7) Technological readiness
8) Business sophistication
9) Innovation

Now where India gains as per above criteria

Innovations and sophistication of firm operations that reflects our true quality of scientific research and the number of scientists and engineers, which increasingly supplying highly skilled professionals to the private sector, (Thanks to the private engineering colleges of Karnataka and Maharashtra) also firm use of technology and rates of technology transfer are high , although penetration rates of the latest technologies are still quite low by international standards.

Now where did India loose as per above criteria

Low levels of per capita income and high incidence of poverty, insufficient health services and education , poorly developed infrastructure is limiting a more equitable distrubution of the benefits of India's high growth rates. Additionally, successive Indian governments have proven to be remarkably ineffective in reducing the public sector deficit, which is one of the highest of the world as per World Economic Forum. (Well this deficit is the same which we used to heard every year from Finance Minister in February during Budget time, Govt takes stringent actions to reduce the fiscal deficit this year).

Now my point of concern is We (India) first need to set the target to become the Top in Asia, then we look ourselves to compete with the whole world.
Interesting to see how India will gain in next 05 years. Well i feel by 2020 we can achieve our dreams.