Infrastructure stands most problematic factor in country: WEF

By Accommodation Times News Service

According World Economic Forum report, Infrastructure has been locked upon as the single biggest hindrance for doing business in India which is followed heavily by corruption and cumbersome bureaucracy. The WEFs global competitiveness report, inadequate supply of infrastructure was cited by a majority of respondents as the most problematic factor for doing business in India, followed by bureaucracy, corruption, tax regulation, policy instability and restrictive labor regulations.

Some of the other factors that were cited as problematic factors for doing business in India include, inflation, access to financing, tax rates, government instability, inadequately educated workforce, crime and theft; and poor public health, among others.

According to WEF, efficient infrastructure is critical to ensuring the effective functioning of the economy as a well-developed infrastructure reduces the effect of distance between regions, helps integrating the national market and connecting it to markets in other countries and regions. In terms of competitiveness, India now ranks 60th, continuing its downward trend that began in 2009. Moreover, the country has fared badly with respect to its BRICS peers.

Once ahead of Brazil and South Africa, it now trails them by several places and is behind China by a margin of 31 positions, while Russia (64th) has almost closed the gap.





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