Indian Economy

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Goods market efficiency:

India is ranked 101 under Intensity of local competition, 123 under Total tax rate, 136 under Imports as a percentage of GDP, 110 under No. days to start a business, and 129 under No. procedures to start a business. China, Japan and USA are ranked 36, 1 and 4 under Intensity of local competition respectively. But all the countries have done poorly when to comes to total tax rate and Imports as a percentage of GDP. USA is ranked in top 25 under No. days to start a business, and No. procedures to start a business. India needs to improve its Intensity of local competition, increase Imports as a percentage of GDP and reduce Total tax rate, No. days to start a business, and No. procedures to start a business.

Labor market efficiency:

India is ranked 86 under Cooperation in labor-employer relations 120 under Flexibility of wage determination and 136 under Women in labor force, ratio to men. USA is ranked in top 50 in all of the above parameters. While Japan is ranked 5 in Cooperation in labor-employer. India needs to improve Cooperation in labor-employer relations, Flexibility of wage determination and Women in labor force, ratio to men in order to compete with country like USA.

Financial market development:

India has done pretty well developing its financial markets but there are two areas where improvement is needed. India is ranked 100 under Soundness of banks and 81 under Availability of financial services. While USA and Japan both are ranked in top 50 when it comes to the Soundness of banks and Availability of financial services. China is also not far behind USA and Japan. India needs to improve its Soundness of banks and Availability of financial services.

Technological readiness:

India is far behind all the other three nations (China, Japan, USA) when it comes to Technological readiness. In almost all the parameter India is ranked above 100. India need to improve its Availability of latest technologies, Firm-level technology absorption , FDI and technology transfer , Individuals using Internet, Fixed-broadband Internet, Int’l Internet bandwidth, and Mobile-broadband .

Market size:

India has done at par with all the other three nations (China, Japan, USA) in all the parameter measuring market size except Exports as a percentage of GDP. India is ranked 114 under Exports as a percentage of GDP. All the other three nations are also ranked 100+ under Exports as a percentage of GDP. India needs to improve its Exports as a percentage of GDP in order to gain competitive advantage over other three countries and improve its ranking.

Innovation and sophistication Factors

Business sophistication:

India has done pretty well in almost all the factors measuring Business sophistication except couple of factors where it has done average. India is ranked 82 under Extent of marketing and 66 under Local supplier quality. USA is ranked under top 10 in both the parameters. Japan is in top 15 in both the parameter and China is at par with India. India needs to improve its Extent of marketing and Local supplier quality.

Innovation

India has done average in all the parameter measuring Innovation. India is ranked in top 50 in all the parameter measuring innovation. USA is ranked in top 10 and Japan is ranked in top 15 in all the parameter measuring innovation. While China is at par with India when it comes to innovation. India need to works in all the parameter to improves its ranking in innovation.