India has moved down 10 places to the 68th rank on an annual global competitiveness index compiled by Geneva-based World Economic Forum (WEF).
The drop is considered largely due to improvements witnessed by several other economies, while Singapore has replaced the US as the world’s most competitive economy.
India, which was ranked 58th is among the worst-performing BRICS nations along with Brazil (ranked even lower than India at 71st this year).
Announcing its latest index, the WEF said on Wednesday India ranks high in terms of macroeconomic stability and market size. However, its financial sector is relatively deep and stable despite the high delinquency rate, which contributes to weakening the soundness of its banking system.
India is also ranked high at the 15th place in terms of corporate governance, while it is ranked second globally for shareholder governance, the WEF study showed. In terms of market size, India is ranked third, while it has got the same rank for renewable energy regulation.
Besides, India also 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.
But, 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.