<div><strong>Sumit Sharma</strong></div><div> </div><div>In an announcement that could warm the hearts of the Indian government and its policy makers, the country’s position in Global Competitive Index (GCI) has improved by 16 notches, reversing five years of decline. The latest rankings were released by World Economic Forum (WEF).</div><div> </div><div>"This dramatic reversal is largely attributable to the momentum initiated by the election of Narendra Modi, whose pro-business, pro-growth, and anti-corruption stance has improved the business community’s sentiment toward the government,’’ said the report. ``The quality of India’s institutions is judged more favorably (60th, up 10), although business leaders still consider corruption to be the biggest obstacle to doing business in the country.’’</div><div> </div><div>Yet, despite an improvement India’s ranking is still seven levels lower than its 2007 ranking. Switzerland, Singapore and the United States retained their positions as the top three. Germany improved its rank to No 4 from fifth position, while the Netherlands jumped from eighth to fifth position. Japan and Hong Kong retained their sixth and seventh ranks, while Sweden nudged the United Kingdom from the ninth to 10th place.</div><div> </div><div><img alt="" src="http://bw-image.s3.amazonaws.com/most-problematic-lrg.jpg" style="width: 492px; height: 318px; margin: 1px;"><br><br>Significantly, India remains one of the least digitally connected countries in the world with a rank of 120, the GCI report said. Fewer than one in five Indians access the Internet on a regular basis, and fewer than two in five are estimated to own even a basic cell phone, it said.</div><div> </div><div>India’s performance in the macroeconomic stability improved by 10 ranks, yet it remains worrisome to give India a rank of 91 among 144 countries on this parameter. India’s average inflation slowed to 6 percent in 2014 courtesy lower commodity prices from a double digit level in the previous year.</div><div> </div><div>While India’s fiscal deficit declined since its 2008 peak, it still amounts to 7 percent of the GDP and remains among the world’s highest. India is 131 on this parameter among 144 countries. Also, though infrastructure improved it still remains a major growth bottleneck, electricity in particular.</div><div> </div><div>Yet, the GCI highlights that most notable improvements are in the basic drivers of competitiveness and that bodes well for the future, especially in the development of manufacturing sector.</div><div> </div><div>Among the SAARC region, India was followed by Sri Lanka at 68. Others were all lower than 100, with Nepal at 100, Bhutan 105 and Bangladesh 107. Pakistan trailed at 126.</div><div> </div><div>Since 2007, Pakistan lost 34 notches, while India is lower by seven levels.<br><br><img alt="" src="http://bw-image.s3.amazonaws.com/global-lrg_0.jpg" style="width: 516px; height: 402px; margin: 1px;"></div>
