Came across this interesting report on a study done by a Harvard institute run by Michael Porter (Institute for Strategy and Competitiveness) which ranks the business competitiveness of nations. The US comes out on top, but of interest is that India is 37 places ahead of China. India comes in at 27, while China has been put at 64 (a drop of nine ranks from the previous year).
According to the study
“Porter and his colleagues found that the Chinese economy has faltered, falling to the middle of the pack at number 64. “China (down nine ranks from last year) continues a downward trend that started in 2002,” they report. “This year’s decline was driven especially by higher levels of corruption, weaker assessment of buyer sophistication, and concerns about labor relations. China also suffers from weak property rights, poor board governance, low quality of management education, and poor access to loans. Overall, it is clear that euphoria about China is moderating as the realities of its competitiveness become more apparent.”
”With a ranking of 27, India fared better, winning praise for recording the highest rate of “dynamism” in improving its competitiveness among low-income countries. “Competitiveness is a dynamic concept,” the authors explain in reference to the addition of this new measure in the BCI. “India’s rapid improvement is visible both in the business environment and in company sophistication.”