India has jumped six places up the annual World Competitiveness Index, from 43rd to 37th, the largest rise amongst Asian economies, predominantly due to enhanced economic performance.

At the top of the list - compiled by the Institute for Management Development (IMD) - is Denmark, followed by Switzerland and Singapore. 

Following a stable five years, there has been significant improvement in terms of the competitiveness of India’s economy this year, the IMD stated, mainly down to economic performance gains, moving to 28th place from 37th. 

In addition, the domestic economy has experienced a surge from 30th to 9th place in a year, the IMD added. India’s labour market moved from 15th to 6th, and there were also considerable advances in management practices and business attitudes. 

“Prime Minister Narendra Modi has made major improvements in the context of retrospective taxes in 2021, and India appears to have restored the trust of the business community. Its re-regulation of several sectors, including drones, space, and geo-spatial mapping, also likely played a role in the country’s stellar performance in the 2022 WCR,” according to economists at IMD World Competitiveness Centre.  

Furthermore, India is a motivating force in the global fight against climate change. Modi pledged to hit net zero by 2070 during the COP26 summit in November last year, highlighting its strength in environment-related technologies within the ranking. 

The challenges faced by India include maintaining elevated post-pandemic GDP growth, controlling trade disruptions, skill development, asset monetisation and resource mobilisation for infrastructure development, reports The Indian Express. 

The report also stated that the top five factors within India’s economy that are attractive to business are: cost competitiveness, skilled workforce, high educational level, economic dynamism and positive attitudes.