State Competitiveness Report

Competitiveness at the state level is as vital as at global or national levels. It is basically a measure of productivity, that is, returns per rupee invested. GDP is a measure of productivity as it reflects prosperity of the state.

The India State Competitiveness Report is an annual report that provides insights on the determinants of competitiveness for the states and policymaking bodies, discerning their flaws and showcasing potential. The ideas and evidence present a perspective on the impact of the business environment on competitiveness and allows the governments and firms acquire acumen in state and national performances. It highlights the pillars, the factors on which states can base their decisions and ensure a more progressive, all-encompassing path to its overall qualitative improvement.

The core structure of the report is based on Porter’s Diamond model and also on the World Economic Forum’s framework on national competitiveness. Factors that determine or affect the same have been taken into consideration to capture the idea of competitiveness. It is an integrated index backed by rigorous academic research and objective findings. More than 300 indicators are taken into account to arrive at the results.
The model is such that it categorizes the influences on competency to gauge the different processes behind the impacts. Groups have been positioned as per importance to highlight the summation of these individual factors in forming the whole. The report incorporates hard data that allows a more current assessment of competitiveness ranking with mapping of incremental or quantum changes in values of input indicators.

It is imperative that the indicators used must be understood in terms of their impact on the productivity of a state, both in terms of its magnitude as well as direction. Some indicators have a negative influence on the competitiveness measure, while others enhance it. It is therefore important to understand these measures, and build upon them for the purpose of the study. In the summation process, the individual weighting allotted to the indicators plays a pivotal role in every index model. The elements of the framework are grossed to arrive at an overall competitiveness score.

From an execution and policy formulation perspective, this approach provides clarity to the choice of relatively important indicators; a virtual Pole Star for those keen to enhance competitiveness. Gauging the states as potential investment avenues and provide a perspective on expected returns.