About the Index
The World Competitiveness Ranking (WCR) is published annually by the International Institute for Management Development (IMD), a business school headquartered in Lausanne, Switzerland. Published since 1989 as part of the World Competitiveness Yearbook (WCY), it is one of the oldest and most comprehensive assessments of how economies manage their resources and competencies to increase prosperity.
Methodology
The WCR evaluates 69 economies (expanded from 66 in 2024, adding Kenya, Namibia, and Oman) based on four competitiveness pillars:
| Pillar | Sub-Factors | Weight |
|---|---|---|
| Economic Performance | Domestic economy, international trade, international investment, employment, prices | 25% |
| Government Efficiency | Public finance, tax policy, institutional framework, business legislation, societal framework | 25% |
| Business Efficiency | Productivity, labour market, finance, management practices, attitudes & values | 25% |
| Infrastructure | Basic infrastructure, technological infrastructure, scientific infrastructure, health & environment, education | 25% |
The ranking uses a combination of hard data (2/3 of the total) from international organisations and survey data (1/3) from over 6,000 business executives worldwide.
India’s Performance
India ranks 41st out of 69 economies, dropping 2 positions from 39th in 2024.
Pillar-wise Performance
| Pillar | India’s Rank (2025) | Change from 2024 |
|---|---|---|
| Economic Performance | 27th | Down from 20th |
| Government Efficiency | 45th | Unchanged |
| Business Efficiency | 25th | Unchanged |
| Infrastructure | ~53rd | Slight decline |
Key Strengths
- Business Efficiency (25th) — India scores well on management practices, entrepreneurship culture, and attitudes towards globalisation
- Domestic economy — Large market size and GDP growth rate advantage
- Labour market dynamism — Young workforce and competitive labour costs
Key Weaknesses
- Infrastructure (~53rd) — Deficits in basic infrastructure, health, and education
- Government Efficiency (45th) — Bureaucratic complexity, regulatory burden
- Tax policy and public finance — Challenges in fiscal management
Historical Trend
| Year | Rank | Economies |
|---|---|---|
| 2019 | 43 | 63 |
| 2020 | 43 | 63 |
| 2021 | 43 | 64 |
| 2022 | 37 | 63 |
| 2023 | 40 | 64 |
| 2024 | 39 | 66 |
| 2025 | 41 | 69 |
Regional / BRICS Comparison
| Country | WCR Rank (2025) | Change |
|---|---|---|
| China | ~17 | Stable |
| India | 41 | Down 2 |
| South Africa | ~57 | Stable |
| Brazil | ~60 | Slight decline |
| Russia | Not ranked | Excluded since 2022 |
Key Highlights of Latest Edition
- Switzerland retained the top position with 100 points — the maximum score
- Singapore (2nd, 99.44 points) and Hong Kong (3rd, 99.22 points) complete the podium
- The 2025 edition added three new economies: Kenya, Namibia, and Oman
- The report’s special theme is that government efficiency is the key differentiator for fighting social divides and sustaining economic growth
- Small, open economies with strong institutions consistently outperform larger economies
- The report notes that digital transformation and green transition are now essential competitiveness factors, not optional advantages
- India’s decline in Economic Performance (from 20th to 27th) reflects slowing export growth and investment inflow concerns
UPSC Relevance
Prelims: India’s rank (41st), IMD HQ (Lausanne, Switzerland), four pillars of competitiveness, top performers, total economies assessed (69) Mains GS-3: India’s economic competitiveness — infrastructure deficit, ease of doing business reforms, Make in India, digital infrastructure (UPI, Aadhaar), manufacturing sector challenges, FDI policy Interview: “India ranks 25th in business efficiency but only 45th in government efficiency — how can governance reforms bridge this gap?”
