India has been facing a challenging macroeconomic environment since a quite some time. But the issues have risen to the proportion of 1991-like crisis only recently.
Having said that, India is not the only economy confronting serious economic problems. Globally developed and developing economies are facing their own set of challenges. In the midst of this, is India better off than its peer countries?
Poor infrastructure, inefficient bureaucracy, corruption and tax regulations are the four top reasons highlighted in the GCI report for India's poor performance. India's performance has been so poor that it has been ranked the worst among various emerging markets. While China, continued to lead the group with 29th rank, followed by South Africa at 53rd rank, Brazil at 56th and Russia at 64th rank.
Not surprisingly, among the various factors, the major concerns as highlighted in the report too, are India's poor infrastructure and corruption. The government has made ambitious plans for ramping up the infrastructure in the country. However, execution has been the issue. There have been a myriad of reasons for this persistent underperformance and here too corruption is one of them. Corruption in India remains a menace. Frauds, scams, bribes and the like seem to have become a way of life for politicians as well as for businesses operating in India.
The need of the hour is to accelerate the pace of economic reforms and build stronger institutions. But that may seem easier said than done. India's politico is currently focused on vote grabbing legislations like Food Security and Land Acquisition Bills. Worrying about the country's competitive ranking may not be on their minds for a very long time!