What led to India’s rise in the global competitiveness index?

MUMBAI, INDIA: India has ended five years of decline in global competitiveness index. It has escalated to the 55th spot as per the Global Competitiveness Report 2015-2016.

"However, there are bright spots: India ends five years of decline with a spectacular 16-place jump to 55th. South Africa re-enters the top 50, progressing seven places to 49th," the WEF said.

Here are five reasons attributed to the jump:

•    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 is one of the major attributes.

•    The quality of India's institutions is judged more favorably (60th, up 10), but business leaders still consider corruption to be the biggest obstacle to doing business in the country.

•    Most notable improvements are in basic drivers of competitiveness bodes well for the future, especially the development of the manufacturing sector.

•    Although, China at 28 remains the most competitive of this group of economies, its lack of progress moving up the ranking shows the challenges it faces in transitioning its economy.

•    Elsewhere, macroeconomic instability and loss of trust in public institutions dragged down Turkey (51st), as well as Brazil (75th), which posts one of the largest falls. Russia was ranked 45th in the index, down from the 53rd position last year.

However, the report also pointed out some areas for improvement.  These include:

•    Tech readiness: India remains one of the least digitally connected countries in the world (120th, up one).

•    The most problematic factors for doing business in India include corruption, policy instability, inflation and access to finance.

Overall, India and South Africa emerged as the bright spots among larger emerging markets, as both these countries saw large improvement in the global competitiveness index compiled by World Economic Forum defying the current trend of decline or stagnation.

Even among the South Asian Association for Regional Cooperation (SAARC) countries, India led the way at the 55th spot, followed by Sri Lanka (68th, up five). Nepal (100th, up two), Bhutan (105th, down two), Bangladesh (107th, up two), and Pakistan (126th, up three) all rank 100th or below.

Globally, Switzerland has retained its top position as the world's most competitive economy for seventh year in a row and is followed by Singapore, the US, Germany and the Netherlands in the top-five.

These are followed by Japan, Hong Kong, Finland, Sweden and the UK in the top ten.