Competitiveness of Nations, With Special Reference to India

Abstract

The purpose of this study is to understand factors which make a country competitive in the era of globalization. The investigation is based on literature survey and the scope is limited to secondary data drawn from international and national reports of repute. The analysis has made use of the methodology adopted by the World Economic Forum (WEF), Geneva, Switzerland that ranks nations on Global Competitiveness Index (GCI). The study has analysed India’s position relative to other nations on overall GCI index, as well as on twelve pillars of competitiveness. Findings suggest that India is clearly lagging behind in adoption of latest technologies that are crucial for enhancing productivity of its industries. Further, infrastructure base in supporting economic activity in various regions of the country is still not very strong. The quality of higher education and training, and job allocation (labour market efficiency) to sectors/industries where workforce will be most effective are also mismatch relative to other leading economies of the world. Institutional development and maturity are essential to impart growth and progress of Indian economy. Excluding market size, where we are among the top nations to attract foreign goods’ imports for consumption, India is also lagging behind in innovation and cutting edge technologies’ development for eventual product development to generate business and industry growth. The study also analyses the position of Indian industry where the share of manufacturing to nation’s GDP is a cause of concern. The findings indicate that Indian manufacturing has to improve its productivity, adopt latest manufacturing practices, and make use of modern management techniques. Further, Indian industry needs to improve the quality of its products, overcome infrastructure bottlenecks, upgrade its sales and operations planning efficiency to eliminate frequent shortages of raw materials, skilled manpower and logistics bottlenecks from time to time.