The Indian Economy Blog

November 21, 2006

Global Competitiveness

Filed under: Business — Arjun Swarup @ 1:37 am

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.”

(Emphasis mine).

 ”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.”

1 Comment »

  1. This topic Global Competitiveness really gave me some information on our growth.



    Comment by Yuvaraj — November 21, 2006 @ 1:53 pm

  2. Though nothing can deny the fact that india is behind china in economic growth . But if we look at situtation in longer terms then we do see a see a image (though a little blur) where india promises to wheel past china and other developer countries. It all dependes – on whole sysytem renaissance,of which we are in dire need of.

    Comment by sandeep taya — November 23, 2006 @ 9:55 pm

  3. One has to visit China and see for him self the potential that country offers to the world. China shall face socio economic problems due to rapid strides it is making but the heartening thing is they are aware of the problem. God doesnt run the country. The country has a agenda and the people are alligning themself to the national agenda. people of China wish to make their country strong against The US. What china does in 1 yr india cannot accomplish in 5 yrs. China knows its short comings and is having a strategy and a responsbile person assigned to take care of the weaknesses.

    Comment by Vasant Khisty — April 12, 2007 @ 9:42 am

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