The Competitive Advantages of the Indian Economy

Global Competitiveness 1
The Competitive Advantages of the Indian Economy
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Global Competitiveness 2
Executive Summary
The countries of China and India have indicated a tremendous progress in their economy. The
major competitive advantages of the Indian economy are outlined in pillars of business
sophistication and innovation. India has improved across infrastructure, advanced education and
preparing and mechanical availability. The performance in ICT has also improved as well as
institution qualities in terms of efficiency. From the Global Competitive Report, China is at 27th
position and India is at the 40th position. However, there are barriers that hinder the development
of India’s economy. The financial systems in India are not readily available and the government
is not efficient in offering financial resources. The economy of India will grow if the production
inputs are used in a proper way. On the other hand, the country of India needs to embrace
innovation in production as well as value development. Appropriate markets that allow product
market efficiency, labour market functioning and financial market development should be
established.

Global Competitiveness 3
Table of Contents
Executive Summary...................................................................................................................................2
1.Introduction............................................................................................................................................4
2.Analytical development..........................................................................................................................4
Task 1: The Position of India and China on the Economic Development Path........................................4
Task 2: The Overall Competitive Position of India and China................................................................6
Task 3: The Rule Applicable For the Evaluation of the National Competitive Advantages of India and
China.......................................................................................................................................................7
Task 4: Competitive Advantages in Pillars # 11 And # 12 for India........................................................7
Task 5: The Barriers to Economic Development in India........................................................................8
3.Conclusion...............................................................................................................................................9
4.References...........................................................................................................................................10
Appendices...............................................................................................................................................14
Appendix A...........................................................................................................................................14
Appendix B...........................................................................................................................................15
Appendix C...........................................................................................................................................16

Global Competitiveness 4
The Competitive Advantages of the Indian Economy
1. Introduction
The world economy has begun to show some encouraging signs of recovery over the few
years. In 2017, the growth of GDP accelerated to 3.5 per cent (Aghdaie et al. 2012, p.12). In
spite of this positive advancement, pioneers are confronting various difficulties with regards to
the financial arrangement. The uneven distributions of economic progress benefits, increasing
environmental degradation and the increased income disparity in developed economies have
increased the sense that the past economic policies did not serve citizens or society well(Baldwin
and Evenett 2009, p.34). The technological disruptions coupled with new fault lines that have
emerged from the global economy as well as the political order have heightened uncertainty
about the type of policies to be implemented. All of these factors are cumulatively posing several
challenges to decision makers in finding new approaches to advance the progress of the
economy. This paper seeks to elaborate the position of India and China on the economic
development path and the competitive advantage of India based on the Global Competitive Index
Report.
2. Analytical development
Task 1: The Position of India and China on the Economic Development Path
The countries of India and China have indicated a drastic progress on the economic
development path. The financial advancement path is the procedure by which countries enhance
the monetary, social and political well-being of its people. The national economy of India and
China was almost at the same level in the fifties (Chen 2016, p.8). During this time, the Indian
economy recorded better performance in terms of gross national product. In the 1970s, a drastic