Indian Economy

Indian Economy and policy

India is ranked 55th in GCI index 2015-16. While other countries like China, Japan, and USA are ranked 28, 6, and 3 respectively. Global competitiveness index (GCI) is calculated using three sub index and each sub index has certain number of pillars. Following are the index and their pillars.

1. Basic requirement sub index

1. Institution
2. Infrastructure
3. Macroeconomic  Environment
4. Health and primary education

1. Efficiency Enhancer Sub index

1. Higher education and training
2. Good Market Efficiency
3. Labor Market Efficiency
4. Financial Market development
5. Technological Readiness
6. Market Size

1. Innovation and sophistication Factors

1. Business Sophistication
2. Innovation

Basic requirement sub index:

Institution:

When it comes to the first pillar institution India has done well in good number of areas but there are certain areas where it is far behind countries like china, Japan and USA. India is ranked at 103 when it comes to property rights, 126 under business cost of terrorism, 119 under organized crimes, 95 under strength of auditing and reporting standards, 96 under efficacy of corporate bonds and 98 under Business costs of crime and violence. China, USA, and Japan are ranked far better when it comes to property rights.  Japan and USA has done much better under strength of auditing and reporting standards and under efficacy of corporate bonds. India needs to strengthen its property rights, auditing and reporting standards and under efficacy of corporate bonds.

Infrastructure:

When it comes to infrastructure India has a long way to go. India is ranked 121 under Mobile telephone subscriptions, 116 under Fixed-telephone lines, and 98 under Quality of electricity supply. China, USA and Japan have done much better than India and are much better ranked when it comes to Fixed-telephone lines, and Quality of electricity supply. India needs to improve its Fixed-telephone lines, and 98 under Quality of electricity supply.

Macroeconomic Environment:

India’s Macroeconomic Environment is pretty unstable. India is ranked 131 under Government budget balance, 105 under Inflation, and 103 under General government debt. China, USA and Japan are ranked 1 when to come to controlling inflation. China has done much better than India, when it comes to controlling General government debt and Government budget balance. India needs to improve its Government budget balance, General government debt and control inflation in a better way.

Health and primary education:

India has improved a bit, managing its Health and primary education but still a lot of improvements need to done. India is ranked 113 under Tuberculosis cases, 132 under Business impact of tuberculosis, 130 under business impact of HIV/AIDS, 114 under Infant mortality, and 107 under Life expectancy. While countries like china, Japan and USA are not far ahead of India when it comes to Tuberculosis cases, Business impact of tuberculosis,  and business impact of HIV/AIDS but these countries have done tremendously well under Infant mortality, and Life expectancy. India needs to work a lot in all the above mentioned areas.

Efficiency Enhancer Sub index:

Higher education and training:

India has improved its Higher education and training and ranked average in all the parameter. India is ranked 86 under Tertiary education enrollment, 100 under Internet access in schools and 105 under Secondary education enrollment. USA is ranked 3 under Tertiary education enrollment and 17 under Internet access in schools. Japan is ranked 40 under Tertiary education enrollment. China and Japan both are in top 50 under Secondary education enrollment. India needs to improve its Tertiary education enrollment, Internet access in schools and Secondary education enrollment.