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World Competitiveness Index

1. Introduction and Background 11
 The World Competitiveness Index is an index that is released by the Switzerland based
Institute for Management Development (IMD). IMD dedicated to the development of
international business executives at each stage of their careers. It is a part of the IMD
World Competitiveness Yearbook (WCY).
 The IMD World Competitiveness Yearbook (WCY), first published in 1989, is a
comprehensive annual report and worldwide reference point on the competitiveness of
countries. It provides benchmarking and trends, as well as statistics and survey data
based on extensive research. It analyzes and ranks countries according to how they
manage their competencies to achieve long-term value creation.
 The World Competitiveness Ranking is based on 333 competitiveness criteria selected as
a result of comprehensive research. The 333 criteria are broadly based on four major
categories: - Economic Performance, Government Efficiency, Business Efficiency and
Infrastructure.

2. The 2022 World Competitiveness Index

 India has witnessed the sharpest rise among the Asian economies, with a six-position
jump from 43rd to 37th rank.
 Denmark has moved to the top of the 63-nation list from the third position last year,
while Switzerland slipped from the top ranking to the second position and Singapore
regained the third spot from fifth
 Others in the top 10 include Sweden at the fourth position, followed by Hong Kong SAR
(5th), the Netherlands (6th), Taiwan (7th), Finland (8th), Norway (9th) and the USA
(10th).
 The IMD World Competitiveness Ranking (WCR) found that inflationary pressures are
affecting the competitiveness of national economies along with COVID-19, and the
invasion of Ukraine by Russia.
 The three most important trends found to be impacting businesses in 2022 are
inflationary pressures (50%), geopolitical conflicts (49%) and supply chain bottlenecks
(48%) with COVID being the fourth (43%).

Digital News Report

1. Introduction & Background
 The Digital News Report is an annual study undertaken by the Reuters Institute for the
Study of Journalism and tracks how news is consumed in different countries.
 It is based on a survey conducted by YouGuv, a British market research and data
analytics firm, in January/February 2022 through online questionnaires
 It covers 46 markets in six continents. Since it is based on online questionnaires, the
findings are not necessarily nationally representative, especially for countries with lower

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 18
internet penetration. For India, the data is more representative of younger English
speakers and not the national population as such.

2. Major Trends in the 2022 Digital Report

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 Broadly, the report documents the ways in which “the connection between journalism
and much of the public may be fraying”. It flags six major trends which could have wider
socio-political implications.
 Firstly, people are trusting news content less and less. Second, consumption of
traditional news media declined in nearly all the countries surveyed. Third, the
proportion of news consumers who say that they “avoid news” has risen sharply across
countries, with the report describing the phenomenon as “selective avoidance”.
 Fourth, despite small increases in the proportion of people willing to pay for online news
(mostly in richer countries), the growth in digital subscriptions for news content seems
to be leveling off. Next, “the smartphone has become the dominant way in which most
people first access news in the morning”. Finally, the report notes that while Facebook
remained the most-used social network for news, it is TikTok that has become the
fastest-growing network, “reaching 40% of 18-24-year-olds, with 15% using the
platform for news”. TikTok, however, is currently banned in India.

3. Selective Avoidance of News

 While the majority of people remained engaged with news, the report finds that a
growing minority is increasingly choosing “to ration or limit their exposure to it — or at
least to certain types of news”.
 The report calls this behaviour “selective avoidance” and says this is one of the reasons
why news consumptions levels have failed to increase as per expectations.
 The proportion that says they avoid news has doubled in Brazil (54%) and the U.K.
(46%) since 2017. Across markets, respondents cited a variety of reasons for this
avoidance.
 Many said they were “put off by the repetitiveness of the news agenda — especially
around politics and COVID-19 (43%). Some said they were “worn out by the news”
(29%). A significant number said they avoided news because they didn‟t trust it (29%).
About one-third (36%), especially those under 35, said that news ruined their mood.
About 17% said they avoided news because it led to arguments they would rather avoid,
while 16% said reading the news led to feelings of powerlessness. A small percentage
(14%) said that they didn‟t have time for news while 8% said that they found it too hard
to understand.

4. Reasons Cited for Declining Trust in News Content

 The average level of trust in news, at 42%, was found to be lower than the previous
year. Trust levels fell in 21 of the 46 markets surveyed, rising in just seven. The report
states that an “indifference to news and its value, along with widespread perception of
political and other biases by the media, are two of the main reasons for low trust”.
 The trust levels were also lower among those on the right, compared to those on the
left, of the ideological spectrum — a pattern most pronounced in the U.S. In France, on

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 18
the other hand, the lack of trust closely tracked the class divide, with the „haves‟ showing


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higher levels of trust, while the „have-nots‟ viewed media as often aligning itself with the
elites.
Other reasons for low trust included perceptions of undue influence from business or
political interests, with just 19% agreeing that “news organisations put what‟s best for
society ahead of their own commercial or political interests.” At the same time, many
more said that all or most news outfits “put their own political views (40%) or
commercial interests (42%) ahead of society.”

5. Preferred Modes of News Consumption and Main Gateway to News

 Across markets and age groups, text is still king when it comes to news consumption.
However, younger audiences, especially „digital natives‟ who grew up with networks like
Facebook and TikTok, were more likely to say they “watch the news”.
 In India, 58% said that they “mostly read” the news while 17% said they “mostly watch”
it. On the other hand, the comparable figures for Finland, which has a historic pattern of
high newspaper consumption, was 85% and 3% respectively.
 Going beyond the fact of smartphone being the preferred mode of access, the report
finds that “direct access to apps and websites” were becoming less important over time,
giving ground to social media, which is becoming more important as a gateway to news
due to its “ubiquity and convenience”. “At an aggregate level, we have reached
something of a tipping point this year, with social media preference (28%) surging ahead
of direct access (23%)” notes the report.

6. Trends in India
 In the section on India, produced in collaboration with the Asian College of Journalism,
the report, observing that “India is a strongly mobile-focussed market,” says that 72% of
the survey respondents accessed news through smartphones and 35% did so via
computers.
 Also, 84% of the Indian respondents sourced news online, 63% from social media, 59%
from television, and 49% from print. YouTube (53%) and WhatsApp (51%) were the
top social media platforms for sourcing news. India registered a small increase in the
level of trust, with 41% trusting news overall. While legacy print brands and public
broadcasters continued to have high trust levels , only a minority — 36% and 35% —
felt that the media was free from undue political influence and from undue business
influence respectively.
 The 2022 Reuters Institute Digital News Report finds that trust in news is falling in nearly
half the countries surveyed, with significant proportions of the public, especially younger
age groups, beginning to turn away from news. The average level of trust in news, at
42%, was found to be lower than the previous year.
 India registered a small increase in the level of trust, with 41% trusting news
overall. YouTube (53%) and WhatsApp (51%) were the top social media platforms for
sourcing news.

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 18
Sustaining FDI Inflows
1. Introduction 11
 Despite the major slowdown in the global economy induced by the Covid-19 pandemic
and the projections of World Investment Report of expected decline in FDI flows of 30-
40 per cent, the resilient Asian economies witnessed favourable FDI flows which were
rather higher than the global average (UN Conference on Trade and Develoment,
2020).
 Additionally, South Asia experienced a robust surge in FDI during this period, with Indian
seeing a 27 per cent rise.

2. What is Foreign Direct Investment (FDI)?

 Foreign direct investment (FDI) is an ownership stake in a foreign company or project
made by an investor, company, or government from another country.
 Generally, the term is used to describe a business decision to acquire a substantial stake
in a foreign business or to buy it outright to expand operations to a new region. The
term is usually not used to describe a stock investment in a foreign company alone.

3. Growth Rate Scenario of FDI Inflows to India

 In 2017-18, the inflows surpassed $60 billion for the first time ever and the Department
of Promotion of Industry and Internal Trade (DPIIT) put FDI growth at 14% in 2019-20,
the highest in four years.
 The FDI in the FY 2021-22 has touched a "highest ever" figure of $83.57 billion.

4. Factors Facilitating Higher FDI Inflows

 „Make in India‟ and „Atmanirbhar Bharat‟ campaigns coupled with strengthening of India‟s
footing in global supply chains have given momentum to FDI inflows over the past few
years.
 In 2017-18, the inflows surpassed $60 billion for the first time ever and the Department
of Promotion of Industry and Internal Trade (DPIIT) put FDI growth at 14 per cent in
2019-20, the highest in four years.
 The first wave of pandemic prompted around 1,000 companies to shift their base out of
China, with nearly 300 of them being in the areas of medical and electronic devices,
mobiles and textiles. For India, companies like Lava International with over 600
employees clarified its intention to shift its base to India from China.
 With Apple‟s manufacturing partner, Pegatron, already in place in India, it is expected to
infuse $29 billion in the coming years under the Production Linked Incentives (PLI)
scheme. Corporate giants like Silver Lake, Google, Facebook, Foxconn, Saudi Arabia‟s
PIF, General Atlantic Singapore, Hitachi, Walmart and Catterton are also expected to
invest billions of dollars in the Indian economy.

5. Impact of the FDI Inflows

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 
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As per estimates, the expected FDI inflow will result in an increase of 5.68 per cent in


expected to receive a huge boost relative to others.
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India‟s GDP. The industrial output of sectors like metals, construction, machinery and
equipment, motor vehicle parts, computer, electronics, and optical products are

Exports are also expected to witness a rise, because of the FDI-fuelled increase in scale,
quality standards and technology transfer, along with enhanced employment
opportunities.
 Government policies/decisions are of crucial importance in creating a conducive
environment for global investors. The disruptions induced by the pandemic have given
opportunities for India to expand its global footprints. The government is striving to
strengthen the FDI environment through an array of policy initiatives and reforms at all
levels.

6. Important Data
 As per the UNCTAD World Investment Report (WIR) 2022, in its analysis of the global
trends in FDI inflows, India has moved to 7th rank among the top 20 host economies
for 2021.
 Highest FDI contributions country wise- Singapore (27.01%) > USA (17.94%) >
Mauritius (15.98%) > Netherland (7.86%) > Switzerland (7.31%)
 Top 5 States receiving the highest FDI Equity Inflow during FY 2021-22: Karnataka
(37.55%), Maharashtra (26.26%), Delhi (13.93%), Tamil Nadu (5.10%) and Haryana
(4.76%).
 Top 5 sectors receiving the highest FDI Equity Inflow during FY 2021-22 :
Computer Software & Hardware (24.60%), Services Sector (Fin., Banking, Insurance,
Non-Fin/Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis, Other)
(12.13%), Automobile Industry (11.89%), Trading 7.72% and Construction
(Infrastructure) Activities (5.52%).

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 18
Passage 1:
Practice Questions:
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India has witnessed the sharpest rise among the Asian economies, with a jump from
43rd to (1) rank on the annual World Competitiveness Index compiled by the Institute
for Management Development (IMD), largely due to gains in economic performance.
(2) has moved to the top of the 63-nation list from the third position last year, while
Switzerland slipped from the top ranking to the second position and SThe challenges
that India faces include managing trade disruptions and energy security, maintaining
high GDP growth post the pandemic, skill development and employment generation,
asset monetisation and resource mobilisation for infrastructure development.
Singapore regained the third spot from fifth, a global study showed on Wednesday.
"With Prime Minister Narendra Modi having made major improvements in the context
of retrospective taxes in 2021, India appears to have restored the trust of the business
community. Its re-regulation of a number of sectors, including drones, space and geo-
spatial mapping, also likely played a role in the country's stellar performance in the
2022 WCR," economists at IMD World Competitiveness Centre said.
Source: https://www.thehindu.com/news/national/india-jumps-6-places-to-37th-rank-
on-imds-world-competitiveness-index/article65529307.ece
1. Which of the following has been redacted by (1) in the above passage India‟s rank in the
2022 World Competitiveness Index?
A. 33
B. 34
C. 36
D. 37
2. Which of the following has been redacted by (2) in the above passage as the country
that has topped the 2022 World Competitiveness Index?
A. Sweden
B. Norway
C. Finland
D. Denmark
3. Choose the correct option from the following: -
(i) The Institute for Management Development (IMD) is a Switzerland based institution.
(ii) The three most important trends found to be impacting businesses in 2022 are
inflationary pressures (50%), geopolitical conflicts (49%) and supply chain
bottlenecks (48%) with COVID being the fourth (43%).
A. (i) is true, (ii) is false
B. (ii) is false, (i) is true
C. Both (i) and (ii) are true
D. Both (i) and (ii) are false
4. Which of the following IS NOT one of the four major criteria that is used to develop
the World Competitiveness Index?
A. Health facilities

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 B. Government efficiency
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C. Economic Performance
D. Infrastructure
Answers:
1. D
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2. D
3. C
4. A

Passage 2:
Despite the major slowdown in the global economy induced by the Covid-19 pandemic
and the projections of World Investment Report of expected decline in FDI flows of 30-
40 per cent, the resilient Asian economies witnessed favourable FDI flows which were
rather higher than the global average (UNCTAD, 2020). Additionally, South Asia
experienced a robust surge in FDI during this period, with Indian seeing a 27 per cent
rise. „Make in India‟ and „Atmanirbhar Bharat‟ campaigns coupled with strengthening of
India‟s footing in global supply chains have given momentum to FDI inflows over the
past few years. In 2017-18, the inflows surpassed $60 billion for the first time ever and
the (1) put FDI growth at 14 per cent in 2019-20, the highest in four years. The first
wave of pandemic prompted around 1,000 companies to shift their base out of China,
with nearly 300 of them being in the areas of medical and electronic devices, mobiles
and textiles. For India, companies like Lava International with over 600 employees
clarified its intention to shift its base to India from China.
Source: https://www.thehindubusinessline.com/opinion/how-to-sustain-the-post-
covid-surge-in-fdi-inflows/article65423396.ece
1. Which of the following has been redacted by (1) in the above passage as the body that
releases the Foreign Direct Investment (FDI) statistics in India?
A. Department for Promotion of Industry and Internal Trade (DPIIT)
B. Ministry of Corporate Affairs
C. Ministry of Finance
D. Confederation of All India Traders Association
2. Which state received the highest FDI Equity Inflow during Financial Year (FY) 2021-22?
A. Karnataka
B. Tamil Nadu
C. Maharashtra
D. Gujarat
3. As per the UNCTAD World Investment Report (WIR) 2022, in its analysis of the global
trends in FDI inflows, India has moved to _____ rank among the top 20 host
economies for 2021.
A. 4th
B. 5th
C. 6th
D. 7th
4. Which country has the highest FDI contribution to India?

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 A. USA
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5.
B. Singapore
C. Mauritius
D. Germany
Which sector received the highest FDI Equity Inflow during FY 2021-22?
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A. Automobile
B. Construction
C. Fast Moving Consumer aGoods (FMCG)
D. Computer Software and Hardware
Answers
1. A
2. A
3. D
4. B
5. d

Passage 3:
According to the 2022 Digital News Report, trust in news is falling in nearly half the
countries surveyed, with significant proportions of the public, especially younger age
groups, beginning to turn away from news. Further, news consumption is increasingly
happening via social media platforms such as TikTok rather than traditional media. This
study, an annual one commissioned by the (1) , tracks how news is consumed in
different countries. This year‟s report, the eleventh overall, is based on a survey
conducted by YouGuv, a British market research and data analytics firm, in
January/February 2022 through online questionnaires. It covers 46 markets in six
continents. Since it is based on online questionnaires, the findings are not necessarily
nationally representative, especially for countries with lower internet penetration. For
India, the data is more representative of younger English speakers and not the national
population as such.
Source- https://www.thehindu.com/news/a-closer-look-at-the-reuters-institute-digital-
news-report-2022/article65526579.ece
1. Which of the following has been redacted by (1) in the above passage as the body that
releases the Digital News Report?
A. Reuters Institute for the Study of Journalism
B. Reporters without Borderss
C. United Nations Educational and Scientific Cultural Organization (UNESCO)
D. Columbia University
2. Choose the CORRECT option from the following.
(i) The average level of trust in news, at 42%, was found to be lower than the previous
year.
(ii) India registered a small increase in the level of trust, with 41% trusting news
overall.
A. (i) is true, (ii) is false
B. (ii) is false, (i) is true

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 C. Both (i) and (ii) are true
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3.
D. Both (i) and (ii) are false
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As per the report, _____ % of Indians “mostly read the news and _______ % of
Indians “mostly watch” the news.
A. 58, 17
B. 17, 58
C. 34, 47
D. 47, 34
4. The Indian section of the Digital News Report 2022 was produced with collaboration
of _______.
A. Indian Journalists Union
B. Press Trust of India
C. Press Council of India
D. Asian College of Journalism
5. As per the report, in India, which was the top social media source for sourcing news.
A. WhatsApp
B. YouTube
C. Facebook
D. Twitter
Answers
1. A
2. C
3. A
4. D
5. B

Passage 4:
Despite the major slowdown in the global economy induced by the Covid-19 pandemic
and the projections of World Investment Report of expected decline in FDI flows of 30-
40 per cent, the resilient Asian economies witnessed favourable FDI flows which were
rather higher than the global average (UNCTAD, 2020). Additionally, South Asia
experienced a robust surge in FDI during this period, with Indian seeing a 27 per cent
rise. „Make in India‟ and „Atmanirbhar Bharat‟ campaigns coupled with strengthening of
India‟s footing in global supply chains have given momentum to FDI inflows over the
past few years. In 2017-18, the inflows surpassed $60 billion for the first time ever and
the (1) put FDI growth at 14 per cent in 2019-20, the highest in four years. The first
wave of pandemic prompted around 1,000 companies to shift their base out of China,
with nearly 300 of them being in the areas of medical and electronic devices, mobiles
and textiles. For India, companies like Lava International with over 600 employees
clarified its intention to shift its base to India from China.
Source: https://www.thehindubusinessline.com/opinion/how-to-sustain-the-post-
covid-surge-in-fdi-inflows/article65423396.ece
1. Which of the following has been redacted by (1) in the above passage as the body that
releases the Foreign Direct Investment (FDI) statistics in India?

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 A. Department for Promotion of Industry and Internal Trade (DPIIT)
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2.
B. Ministry of Corporate Affairs
C. Ministry of Finance
D. Confederation of All India Traders Association
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Which state received the highest the highest FDI Equity Inflow during Financial Year
(FY) 2021-22?
A. Karnataka
B. Tamil Nadu
C. Maharashtra
D. Gujarat
3. As per the UNCTAD World Investment Report (WIR) 2022, in its analysis of the global
trends in FDI inflows, India has moved to _____ rank among the top 20 host
economies for 2021.
A. 4th
B. 5th
C. 6th
D. 7th
4. Which country has the highest FDI contribution to India?
A. USA
B. Singapore
C. Mauritius
D. Germany
5. Which sector received the highest FDI Equity Inflow during FY 2021-22?
A. Automobile
B. Construction
C. Fast Moving Consumer aGoods (FMCG)
D. Computer Software and Hardware
Answers
1. A
2. A
3. D
4. B
5. D

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