Envisaging an accelerated and inclusive economic growth, the state of Andhra Pradesh decided to benchmark itself against the developed economies that were top ranked in renowned global indices, Global Competitiveness Index (GCI) being one such. Developed by the World Economic Forum, it ranks 140 global economies on 12 pillars that comprise of a total 119 indicators. Being a survey of the business community in an economy, GCI is a best measure of assessing its competitive health.
In 2015, GoAP signed a MoU with the WEF to assess its economy viz. the twelve pillars elaborated by the GCI. Thus AP became the 141st economy in the World, and first in India, to implement this Index. WEF acceded to compute the index for the year 2015-16 and trained the selected GoAP employees towards the methodology and procedural approach of GCI, with CII as the knowledge partner. The sample consisted of 236 respondents (business entities to be surveyed) which were done in lieu with the structural pattern of AP’s economy. A list of surveyors, that were research scholars from reputed Universities in the State, were tabulated by DES and given hands-on for a day for canvassing the questionnaire to the respondents. Post data collection done by the research scholars, data was compiled by DES and its analysis was done by both WEF and DES (Planning Department). For the year 2015-16 AP surpassed India’s rank of 55 and score of 4.31 with 51st rank and 4.37 score.
GCI report for the year 2016-17 was released on October 2016 where it assessed 138 global economies. India ranked 39 with a score of 4.52. Motivated by the results of Round 1, GCI for AP 2016-17 commenced in the month of April. The respondents for this time are increased to 380. Training workshop of the surveyors was organized in the first week of April and data collection commenced from April 7, 2017 to April 25- 2017. Data compilation and tabulation was performed by the DES till May 5th. From May 5th to May 15th, Data for AP is analyzed vis-à-vis other global economies by researchers from the Vision Management Unit.
For the year 2016-17, AP has scored 4.57/7 and GCI equivalent rank of 36 surpassing India 2016-17 value of 4.52/7 and rank 39.
The pillar-wise performance of Andhra Pradesh for the year 2016-17 is summarized in the table below; and compared with the performance of AP-GCI 2015-16 and that with India 2016-17.
|Sub Index A: Basic Requirements||74||4.48||80||4.43||63||4.6||81||4.41|
|Sub Index B: Efficiency Enhancers||34||4.71||46||4.36||46||4.4||59||4.19|
|Sub Index c: Innovation & Sophistication||29||4.24||50||3.82||30||4.22||46||3.90|
|1st pillar: Institutions||34||4.63||38||4.43||42||4.4||60||4.06|
|2nd pillar: Infrastructure||63||4.26||81||3.73||68||4.00||81||3.72|
|3rd pillar: Macroeconomic environment||75||4.55||91||4.40||75||4.55||91||4.40|
|4th pillar: Health and primary education||122||4.46||103||5.15||85||5.5||84||5.48|
|5th pillar: Higher education and training||76||4.25||88||3.95||81||4.1||90||3.87|
|6th pillar: Goods market efficiency||58||4.40||65||4.33||60||4.4||91||4.17|
|7th pillar: Labor market efficiency||45||4.50||74||4.19||84||4.1||103||3.86|
|8th pillar: Financial market development||38||4.43||43||4.28||38||4.41||53||4.08|
|9th pillar: Technological readiness||81||3.70||109||2.98||110||2.99||120||2.73|
|10th pillar: Market size||3||6.40||3||6.44||3||6.40||3||6.44|
|11th pillar: Business sophistication||33||4.46||62||4.05||35||4.39||52||4.15|
|12th pillar: Innovation||28||4.08||46||3.59||29||4.05||42||3.65|
|Legend/ Color code:|
|Worst than AP 15-16 and India 16-17|
|Worst than India 16-17|
|Worst than AP 15-16|
|Better than AP 15-16 and India 16-17|
|Same as (national) India 2016-17|