The WEF said drop of 10 places in India's position may look dramatic, but the decline in the country's competitiveness score is relatively small. (Photo: Reuters)

India has slipped 10 rungs to end up at the 68th rank on the World Economic Forum's (WEF) annual global competitiveness index, due to a marked improvement in the economies of some other countries. Singapore has emerged as the star performer replacing the US as the world's most competitive economy on the list.

India was ranked 58th in the annual Global Competitiveness Index compiled by Geneva-based World Economic Forum (WEF) last year but is among the worst-performing BRICS nations this year, along with Brazil which has fallen even further to the 71st position.

China is ranked 28th, which is the highest rank among BRICS members while Vietnam is the most improved country in the region this year at 67th place.

WEF also said that India ranks high in terms of macroeconomic stability and market size, while its financial sector is relatively deep and stable despite the high delinquency rate, which contributes to weakening the soundness of its banking system.

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India is also ranked at a high 15th place in terms of corporate governance, while it is ranked second globally for shareholder governance, according to the WEF study released on Wednesday.

India is also ranked third in terms of market size, and has likewise secured the third position for renewable energy regulation. Besides, India punches above its development status when it comes to innovation, which is well ahead of most emerging economies and on par with several advanced economies, the report said.

However, these positive metrics contrast with major shortcomings in some of the basic enablers of competitiveness in case of India, the WEF said, while flagging limited ICT (information, communications and technology) adoption, poor health conditions and low healthy life expectancy.

The WEF said the healthy life expectancy, where India has been ranked 109th out of total the 141 countries surveyed for the index, is one of the shortest outside Africa and significantly below the South Asian average.

Besides, India needs to grow its skills base, while its product market efficiency is undermined by a lack of trade openness and the labour market is characterised by a lack of worker rights' protections, insufficiently developed active labour market policies and critically low participation of women.

With a ratio of female workers to male workers of 0.26, India has been ranked very low at 128th place. India is also ranked low at 118th in terms of meritocracy and incentivisation and at 107th place for skills.

The WEF said the drop of 10 places in India's position to 68th place may look dramatic, but the decline in the country's competitiveness score is relatively small.

A number of similarly placed economies including Colombia, South Africa and Turkey improved over the past year and hence have overtaken India.

The study highlighted that the global economy is unprepared for a major slowdown. In the overall ranking, India's arch rival Pakistan figures at a lowly 110th spot while neighbouring Bangladesh and Nepal fare relatively better at the 105th and 108th position respectively.

Sri Lanka has been ranked at the 84th place. The Global Competitiveness Index (GCI), which was launched in 1979, maps the competitiveness landscape of 141 economies through 103 indicators organised into 12 pillars.

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