SlideShare a Scribd company logo
1 of 3
Download to read offline
Global Competitiveness Report 2016
Amit Kumar Anand
www.amitkanand.com
September 28, 2016
1 Introduction
• The Global Competitiveness Report
20162017 comes out in the context of
persistent slow growth and a near- term
outlook that is fraught with renewed un-
certainty fueled by continued geopolitical
turmoil, financial market fragility, and
sustained high debt levels in emerging
markets.
• GDP growth has fallen from levels of 4.4
% in 2010 to 2.5 % in 2015.
• Many economies around the world strug-
gle with the double challenges of slowing
productivity growth and rising income in-
equality, often exacerbated by rapidly ag-
ing societies.
• Based on digital platforms, the Fourth
Industrial Revolution is characterized
by a convergence of technologies that is
blurring the lines between the physical,
digital, and biological spheres.
• Breakthroughs in technologies such as
artificial intelligence, biotechnology,
robotics, the Internet of Things, and 3D
printing, to name a few, will provide new
avenues for growth and development in
the future but could also give rise to
significant social challenges.
2 Fourth Industrial Revolu-
tion
• This transformationthe Fourth Industrial
Revolutionis not defined by any partic-
ular set of emerging technologies them-
selves, but rather by the transition to new
systems that are being built on the infras-
tructure of the digital revolution.
• As these individual technologies become
ubiquitous, they will fundamentally alter
the way we produce, consume, communi-
cate, move, generate energy, and interact
with one another.
• And given the new powers in genetic engi-
neering and neurotechnologies, they may
directly impact who we are and how we
think and behave.
3 Main Findings
• Many of the competitiveness challenges
we see today stem from the aftermath of
the financial crisis.
• The great recession led many advanced
economies to implement very loose mon-
etary policy, which in turn fueled a
global commodities boom that masked
many of the competitiveness challenges of
commodity-exporting emerging markets.
• Vulnerability to commodity price fluc-
tuations in emerging economies and the
promises of the Fourth Industrial Revo-
lution underscore the importance of in-
novation as a source of competitiveness
and economic diversification to reignite
growth.
• Against this background, it is clear that
1. monetary stimulus is not enough to
reignite growth if economies are not
competitive.
1
2. an increasingly important element
of competitiveness is creating an en-
abling environment for innovation.
3. innovation in turn goes hand in
hand with openness and economic
integration.
4 India’s Performance
1. India’s rank 39; highest jump of 16 places
from 55.
2. India’s GCI score stagnated between
2007-14. After the new government came
to power in 2014 GCI has improved year
on year.
3. Health and basic education improved
through out the decade.
4. Infrastructure improvement was small
until 2014 but picked up after improved
public investment and sped up approval
procedures to attract private resources.
5. Due to governance scandal and unman-
ageable inefficiencies India’s institutional
environment deteriorated until 2014 as
businesses lost trust in government and
public administration, but this trend re-
versed after 2014.
6. Financial market development also im-
proved after 2014 but not upto the pre
2008 levels.
7. Financial market development is the pil-
lar which is most dragging down India’s
competitiveness.RBI has increased trans-
parency in financial market and have
shed light on huge NPA, previously not
reported.
8. Technological readiness is also area of
concern where progress had stagnated.
Digital India could lead to significant im-
provements.
5 Reasons for India’s im-
proved Performance
1. Improved monetary and fiscal policies, as
well as lower oil prices, the Indian econ-
omy has stabilized and now boasts the
highest growth among G20 countries.
2
2. opening the economy to foreign investors
and international trade.
3. increasing transparency in the financial
system.
6 Areas for improvement
1. The labor market is segmented between
workers protected by rigid regulations
and centralized wage determination and
millions of unprotected and informal
workers.
2. The efficiency of the domestic market is
hindered by fiscal regulations that allow
federal states to levy different levels of
value-added taxes.
3. lack of infrastructure and ICT use remain
bottlenecks.
3

More Related Content

What's hot

Globalisation
GlobalisationGlobalisation
Globalisation
guest156d5f7
 
Globalisation & UK Economy 2015
Globalisation & UK Economy 2015Globalisation & UK Economy 2015
Globalisation & UK Economy 2015
mattbentley34
 
Global Economy (2)
Global Economy (2)Global Economy (2)
Global Economy (2)
iimsritesh
 
Vietnam Development, Infrastructure And Public Policy Since Doi Moi
Vietnam Development, Infrastructure And Public Policy Since Doi MoiVietnam Development, Infrastructure And Public Policy Since Doi Moi
Vietnam Development, Infrastructure And Public Policy Since Doi Moi
Paul O'Connor
 
Challenge faced by indian economy
Challenge faced by indian economyChallenge faced by indian economy
Challenge faced by indian economy
Saksham Dewan
 

What's hot (20)

Economic Analysis of Malaysia
Economic Analysis of MalaysiaEconomic Analysis of Malaysia
Economic Analysis of Malaysia
 
OECD-Wirtschaftsausblick Juni 2017
OECD-Wirtschaftsausblick Juni 2017OECD-Wirtschaftsausblick Juni 2017
OECD-Wirtschaftsausblick Juni 2017
 
Riskmgt260413a
Riskmgt260413aRiskmgt260413a
Riskmgt260413a
 
US Economic Stimulus, Q3
US Economic Stimulus, Q3US Economic Stimulus, Q3
US Economic Stimulus, Q3
 
Globalisation
GlobalisationGlobalisation
Globalisation
 
Principles of economics (growth paradox)
Principles of economics (growth paradox)Principles of economics (growth paradox)
Principles of economics (growth paradox)
 
India - Growth Options
India - Growth OptionsIndia - Growth Options
India - Growth Options
 
Globalisation & UK Economy 2015
Globalisation & UK Economy 2015Globalisation & UK Economy 2015
Globalisation & UK Economy 2015
 
Features of globalisation
Features of globalisationFeatures of globalisation
Features of globalisation
 
Ethiopian GDP
Ethiopian GDPEthiopian GDP
Ethiopian GDP
 
The global economy in 2015
The global economy in 2015The global economy in 2015
The global economy in 2015
 
Impact on glob
Impact on globImpact on glob
Impact on glob
 
effect of inflation on indian economy ppt
effect of inflation on indian economy ppteffect of inflation on indian economy ppt
effect of inflation on indian economy ppt
 
Global Economy (2)
Global Economy (2)Global Economy (2)
Global Economy (2)
 
Vietnam Development, Infrastructure And Public Policy Since Doi Moi
Vietnam Development, Infrastructure And Public Policy Since Doi MoiVietnam Development, Infrastructure And Public Policy Since Doi Moi
Vietnam Development, Infrastructure And Public Policy Since Doi Moi
 
Infrastructure bottlenecks & economic development in india
Infrastructure bottlenecks & economic development in indiaInfrastructure bottlenecks & economic development in india
Infrastructure bottlenecks & economic development in india
 
Challenge faced by indian economy
Challenge faced by indian economyChallenge faced by indian economy
Challenge faced by indian economy
 
Emerging Markets
Emerging MarketsEmerging Markets
Emerging Markets
 
Malaysia macroeconomic view
Malaysia macroeconomic viewMalaysia macroeconomic view
Malaysia macroeconomic view
 
financial liberalization
financial liberalizationfinancial liberalization
financial liberalization
 

Viewers also liked

Fundraising & Szponzoráció
Fundraising & SzponzorációFundraising & Szponzoráció
Fundraising & Szponzoráció
Krisztina Ilosfai
 
1.website & team_profiles_guidance (1)
1.website & team_profiles_guidance (1)1.website & team_profiles_guidance (1)
1.website & team_profiles_guidance (1)
ctkmedia
 
Filming risk assessment
Filming risk assessmentFilming risk assessment
Filming risk assessment
ctkmedia
 
Transparancy International Hungary kft - Kommunikációs Elemzés
Transparancy International Hungary kft - Kommunikációs ElemzésTransparancy International Hungary kft - Kommunikációs Elemzés
Transparancy International Hungary kft - Kommunikációs Elemzés
Krisztina Ilosfai
 
Lánchíd Design Hotel arculati elemzése
Lánchíd Design Hotel arculati elemzéseLánchíd Design Hotel arculati elemzése
Lánchíd Design Hotel arculati elemzése
Krisztina Ilosfai
 
Health problems in umbai
Health problems in umbaiHealth problems in umbai
Health problems in umbai
aziz khan
 

Viewers also liked (20)

Agriculture
AgricultureAgriculture
Agriculture
 
SMART customized analytics dashboard
SMART customized analytics  dashboardSMART customized analytics  dashboard
SMART customized analytics dashboard
 
Fundraising & Szponzoráció
Fundraising & SzponzorációFundraising & Szponzoráció
Fundraising & Szponzoráció
 
скан0085
скан0085скан0085
скан0085
 
1.website & team_profiles_guidance (1)
1.website & team_profiles_guidance (1)1.website & team_profiles_guidance (1)
1.website & team_profiles_guidance (1)
 
Filming risk assessment
Filming risk assessmentFilming risk assessment
Filming risk assessment
 
Transparancy International Hungary kft - Kommunikációs Elemzés
Transparancy International Hungary kft - Kommunikációs ElemzésTransparancy International Hungary kft - Kommunikációs Elemzés
Transparancy International Hungary kft - Kommunikációs Elemzés
 
Cyber Security, Cyber Warfare
Cyber Security, Cyber WarfareCyber Security, Cyber Warfare
Cyber Security, Cyber Warfare
 
Portifolio Comingersoll
Portifolio ComingersollPortifolio Comingersoll
Portifolio Comingersoll
 
STEP Conference 2015 - Alex Macaulay, SEStran - The role of Regional Transpor...
STEP Conference 2015 - Alex Macaulay, SEStran - The role of Regional Transpor...STEP Conference 2015 - Alex Macaulay, SEStran - The role of Regional Transpor...
STEP Conference 2015 - Alex Macaulay, SEStran - The role of Regional Transpor...
 
About the GCR
About the GCRAbout the GCR
About the GCR
 
Lánchíd Design Hotel arculati elemzése
Lánchíd Design Hotel arculati elemzéseLánchíd Design Hotel arculati elemzése
Lánchíd Design Hotel arculati elemzése
 
Les capacitats físiques bàsiques
Les capacitats físiques bàsiquesLes capacitats físiques bàsiques
Les capacitats físiques bàsiques
 
Quiz club brainfreeze
Quiz club brainfreezeQuiz club brainfreeze
Quiz club brainfreeze
 
Xnbr nitrile
Xnbr nitrileXnbr nitrile
Xnbr nitrile
 
The Data School Meet & Greet
The Data School Meet & GreetThe Data School Meet & Greet
The Data School Meet & Greet
 
Health problems in umbai
Health problems in umbaiHealth problems in umbai
Health problems in umbai
 
Delhi Metro Railway's Stakeholder Management
Delhi Metro Railway's Stakeholder Management Delhi Metro Railway's Stakeholder Management
Delhi Metro Railway's Stakeholder Management
 
MORPHOLOGY OF RURAL SETTLEMENTS
MORPHOLOGY OF RURAL SETTLEMENTSMORPHOLOGY OF RURAL SETTLEMENTS
MORPHOLOGY OF RURAL SETTLEMENTS
 
Avalon Variations webinar dec 2015
Avalon Variations webinar dec 2015Avalon Variations webinar dec 2015
Avalon Variations webinar dec 2015
 

Similar to Global Competitiveness Report 2016

neweconomicpolicy1991-180901071605.pdf
neweconomicpolicy1991-180901071605.pdfneweconomicpolicy1991-180901071605.pdf
neweconomicpolicy1991-180901071605.pdf
Vishnu J Nair
 
Can India Overtake China Harvard Thesis
Can India Overtake China Harvard ThesisCan India Overtake China Harvard Thesis
Can India Overtake China Harvard Thesis
Smita Purushottam
 
Chapter 5 How Managers Use Balance of Payments Data – p.213Do.docx
Chapter 5   How Managers Use Balance of Payments Data – p.213Do.docxChapter 5   How Managers Use Balance of Payments Data – p.213Do.docx
Chapter 5 How Managers Use Balance of Payments Data – p.213Do.docx
robertad6
 

Similar to Global Competitiveness Report 2016 (20)

neweconomicpolicy1991-180901071605.pdf
neweconomicpolicy1991-180901071605.pdfneweconomicpolicy1991-180901071605.pdf
neweconomicpolicy1991-180901071605.pdf
 
New economic policy 1991
New economic policy 1991New economic policy 1991
New economic policy 1991
 
GLOBALIZATION (GLOBALIZATIONAND ITS IMPACT)
GLOBALIZATION (GLOBALIZATIONAND ITS IMPACT)GLOBALIZATION (GLOBALIZATIONAND ITS IMPACT)
GLOBALIZATION (GLOBALIZATIONAND ITS IMPACT)
 
208 gwes unit5a
208 gwes unit5a208 gwes unit5a
208 gwes unit5a
 
TCI 2014 Beyond Industrial Policy
TCI 2014 Beyond Industrial PolicyTCI 2014 Beyond Industrial Policy
TCI 2014 Beyond Industrial Policy
 
FICCI's Voice (April 2015)
FICCI's Voice (April 2015)FICCI's Voice (April 2015)
FICCI's Voice (April 2015)
 
Private,public and global enterprises.pptx 2
Private,public and global enterprises.pptx 2Private,public and global enterprises.pptx 2
Private,public and global enterprises.pptx 2
 
Making India a global hub an Artical writen by Raghuram G Rajan
Making India a global hub an Artical writen by Raghuram G RajanMaking India a global hub an Artical writen by Raghuram G Rajan
Making India a global hub an Artical writen by Raghuram G Rajan
 
Group 10 global economy & india
Group 10 global economy & indiaGroup 10 global economy & india
Group 10 global economy & india
 
International Business
International BusinessInternational Business
International Business
 
environmental context
environmental contextenvironmental context
environmental context
 
Unveiling Business Expansion Trends in 2024
Unveiling Business Expansion Trends in 2024Unveiling Business Expansion Trends in 2024
Unveiling Business Expansion Trends in 2024
 
Can India Overtake China Harvard Thesis
Can India Overtake China Harvard ThesisCan India Overtake China Harvard Thesis
Can India Overtake China Harvard Thesis
 
Assignment on Current Economic Conditions
Assignment on Current Economic ConditionsAssignment on Current Economic Conditions
Assignment on Current Economic Conditions
 
India Slowdown Harvard
India Slowdown HarvardIndia Slowdown Harvard
India Slowdown Harvard
 
Lpg policy
Lpg policyLpg policy
Lpg policy
 
Presentation done by Indira singh
Presentation done by Indira singh Presentation done by Indira singh
Presentation done by Indira singh
 
Chapter 5 How Managers Use Balance of Payments Data – p.213Do.docx
Chapter 5   How Managers Use Balance of Payments Data – p.213Do.docxChapter 5   How Managers Use Balance of Payments Data – p.213Do.docx
Chapter 5 How Managers Use Balance of Payments Data – p.213Do.docx
 
Interchina insight 2015
Interchina insight 2015Interchina insight 2015
Interchina insight 2015
 
Partnership Summit Theme Document January 2015
Partnership Summit Theme Document January 2015Partnership Summit Theme Document January 2015
Partnership Summit Theme Document January 2015
 

More from Amit Anand (6)

Draft National Education Policy, 2016
Draft National Education Policy, 2016Draft National Education Policy, 2016
Draft National Education Policy, 2016
 
Higher Education In India
Higher Education In IndiaHigher Education In India
Higher Education In India
 
World Development Report 2016 - Digital dividends
World Development Report 2016 - Digital dividendsWorld Development Report 2016 - Digital dividends
World Development Report 2016 - Digital dividends
 
Air Transport India
Air Transport IndiaAir Transport India
Air Transport India
 
Effects of Globalisation on Indian Society
Effects of Globalisation on Indian Society Effects of Globalisation on Indian Society
Effects of Globalisation on Indian Society
 
Human Right Violation of Homosexuals
Human Right Violation of HomosexualsHuman Right Violation of Homosexuals
Human Right Violation of Homosexuals
 

Recently uploaded

會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
中 央社
 

Recently uploaded (20)

The Liver & Gallbladder (Anatomy & Physiology).pptx
The Liver &  Gallbladder (Anatomy & Physiology).pptxThe Liver &  Gallbladder (Anatomy & Physiology).pptx
The Liver & Gallbladder (Anatomy & Physiology).pptx
 
ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH FORM 50 CÂU TRẮC NGHI...
ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH FORM 50 CÂU TRẮC NGHI...ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH FORM 50 CÂU TRẮC NGHI...
ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH FORM 50 CÂU TRẮC NGHI...
 
Including Mental Health Support in Project Delivery, 14 May.pdf
Including Mental Health Support in Project Delivery, 14 May.pdfIncluding Mental Health Support in Project Delivery, 14 May.pdf
Including Mental Health Support in Project Delivery, 14 May.pdf
 
Dementia (Alzheimer & vasular dementia).
Dementia (Alzheimer & vasular dementia).Dementia (Alzheimer & vasular dementia).
Dementia (Alzheimer & vasular dementia).
 
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUMDEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
 
How To Create Editable Tree View in Odoo 17
How To Create Editable Tree View in Odoo 17How To Create Editable Tree View in Odoo 17
How To Create Editable Tree View in Odoo 17
 
IPL Online Quiz by Pragya; Question Set.
IPL Online Quiz by Pragya; Question Set.IPL Online Quiz by Pragya; Question Set.
IPL Online Quiz by Pragya; Question Set.
 
Spring gala 2024 photo slideshow - Celebrating School-Community Partnerships
Spring gala 2024 photo slideshow - Celebrating School-Community PartnershipsSpring gala 2024 photo slideshow - Celebrating School-Community Partnerships
Spring gala 2024 photo slideshow - Celebrating School-Community Partnerships
 
ANTI PARKISON DRUGS.pptx
ANTI         PARKISON          DRUGS.pptxANTI         PARKISON          DRUGS.pptx
ANTI PARKISON DRUGS.pptx
 
Analyzing and resolving a communication crisis in Dhaka textiles LTD.pptx
Analyzing and resolving a communication crisis in Dhaka textiles LTD.pptxAnalyzing and resolving a communication crisis in Dhaka textiles LTD.pptx
Analyzing and resolving a communication crisis in Dhaka textiles LTD.pptx
 
Improved Approval Flow in Odoo 17 Studio App
Improved Approval Flow in Odoo 17 Studio AppImproved Approval Flow in Odoo 17 Studio App
Improved Approval Flow in Odoo 17 Studio App
 
Mattingly "AI & Prompt Design: Named Entity Recognition"
Mattingly "AI & Prompt Design: Named Entity Recognition"Mattingly "AI & Prompt Design: Named Entity Recognition"
Mattingly "AI & Prompt Design: Named Entity Recognition"
 
An overview of the various scriptures in Hinduism
An overview of the various scriptures in HinduismAn overview of the various scriptures in Hinduism
An overview of the various scriptures in Hinduism
 
“O BEIJO” EM ARTE .
“O BEIJO” EM ARTE                       .“O BEIJO” EM ARTE                       .
“O BEIJO” EM ARTE .
 
Basic Civil Engineering notes on Transportation Engineering, Modes of Transpo...
Basic Civil Engineering notes on Transportation Engineering, Modes of Transpo...Basic Civil Engineering notes on Transportation Engineering, Modes of Transpo...
Basic Civil Engineering notes on Transportation Engineering, Modes of Transpo...
 
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
 
MOOD STABLIZERS DRUGS.pptx
MOOD     STABLIZERS           DRUGS.pptxMOOD     STABLIZERS           DRUGS.pptx
MOOD STABLIZERS DRUGS.pptx
 
8 Tips for Effective Working Capital Management
8 Tips for Effective Working Capital Management8 Tips for Effective Working Capital Management
8 Tips for Effective Working Capital Management
 
Championnat de France de Tennis de table/
Championnat de France de Tennis de table/Championnat de France de Tennis de table/
Championnat de France de Tennis de table/
 
Major project report on Tata Motors and its marketing strategies
Major project report on Tata Motors and its marketing strategiesMajor project report on Tata Motors and its marketing strategies
Major project report on Tata Motors and its marketing strategies
 

Global Competitiveness Report 2016

  • 1. Global Competitiveness Report 2016 Amit Kumar Anand www.amitkanand.com September 28, 2016 1 Introduction • The Global Competitiveness Report 20162017 comes out in the context of persistent slow growth and a near- term outlook that is fraught with renewed un- certainty fueled by continued geopolitical turmoil, financial market fragility, and sustained high debt levels in emerging markets. • GDP growth has fallen from levels of 4.4 % in 2010 to 2.5 % in 2015. • Many economies around the world strug- gle with the double challenges of slowing productivity growth and rising income in- equality, often exacerbated by rapidly ag- ing societies. • Based on digital platforms, the Fourth Industrial Revolution is characterized by a convergence of technologies that is blurring the lines between the physical, digital, and biological spheres. • Breakthroughs in technologies such as artificial intelligence, biotechnology, robotics, the Internet of Things, and 3D printing, to name a few, will provide new avenues for growth and development in the future but could also give rise to significant social challenges. 2 Fourth Industrial Revolu- tion • This transformationthe Fourth Industrial Revolutionis not defined by any partic- ular set of emerging technologies them- selves, but rather by the transition to new systems that are being built on the infras- tructure of the digital revolution. • As these individual technologies become ubiquitous, they will fundamentally alter the way we produce, consume, communi- cate, move, generate energy, and interact with one another. • And given the new powers in genetic engi- neering and neurotechnologies, they may directly impact who we are and how we think and behave. 3 Main Findings • Many of the competitiveness challenges we see today stem from the aftermath of the financial crisis. • The great recession led many advanced economies to implement very loose mon- etary policy, which in turn fueled a global commodities boom that masked many of the competitiveness challenges of commodity-exporting emerging markets. • Vulnerability to commodity price fluc- tuations in emerging economies and the promises of the Fourth Industrial Revo- lution underscore the importance of in- novation as a source of competitiveness and economic diversification to reignite growth. • Against this background, it is clear that 1. monetary stimulus is not enough to reignite growth if economies are not competitive. 1
  • 2. 2. an increasingly important element of competitiveness is creating an en- abling environment for innovation. 3. innovation in turn goes hand in hand with openness and economic integration. 4 India’s Performance 1. India’s rank 39; highest jump of 16 places from 55. 2. India’s GCI score stagnated between 2007-14. After the new government came to power in 2014 GCI has improved year on year. 3. Health and basic education improved through out the decade. 4. Infrastructure improvement was small until 2014 but picked up after improved public investment and sped up approval procedures to attract private resources. 5. Due to governance scandal and unman- ageable inefficiencies India’s institutional environment deteriorated until 2014 as businesses lost trust in government and public administration, but this trend re- versed after 2014. 6. Financial market development also im- proved after 2014 but not upto the pre 2008 levels. 7. Financial market development is the pil- lar which is most dragging down India’s competitiveness.RBI has increased trans- parency in financial market and have shed light on huge NPA, previously not reported. 8. Technological readiness is also area of concern where progress had stagnated. Digital India could lead to significant im- provements. 5 Reasons for India’s im- proved Performance 1. Improved monetary and fiscal policies, as well as lower oil prices, the Indian econ- omy has stabilized and now boasts the highest growth among G20 countries. 2
  • 3. 2. opening the economy to foreign investors and international trade. 3. increasing transparency in the financial system. 6 Areas for improvement 1. The labor market is segmented between workers protected by rigid regulations and centralized wage determination and millions of unprotected and informal workers. 2. The efficiency of the domestic market is hindered by fiscal regulations that allow federal states to levy different levels of value-added taxes. 3. lack of infrastructure and ICT use remain bottlenecks. 3