India better placed than US to tide over economic crisis

New Delhi, May 21 (PTI) The US may have a few economic
lessons to learn from India, with the emerging economy being
better rated than the world's largest economy in terms of
their capabilities to tackle the raging financial turmoil.

India has been ranked at the 13th position among 57
countries by Switzerland-based International Institute for
Management Development (IMD) for being better equipped to
tide over the crisis and emerge more competitive in near term.

The rankings based on 'Stress Test' also takes into
account the future scenario along with individual nations'
readiness and resilience in a period of global recession.

Denmark has clocked the top position, followed by
Singapore, Qatar, Norway and Hong Kong. The US is placed far
below at the 28th spot.

Moreover, at the 13th place, India is ahead of
neighboring China (18th rank) and the world's second-largest
economy, Japan (26).

"The Stress Test shows that smaller nations, which are
export-oriented, resilient and with stable socio-political
environments are better equipped to benefit immediately from
the recovery," IMD World Competitiveness Center Director
Professor Stephane Garelli said.

Going by the rankings, India is better placed than Brazil
(22), the UK (34), Russia (51).

The 'Stress Test' took into account primarily four
factors -- economy forecast, government, business, and society
-- to rate how better each country can sail through crisis.

"Smaller economies are often more fit to adapt and
rebound in difficult times... several of these nations have
already undergone quite severe financial and real estate
crises in the not so distant past and may have been more
cautious in their policies," Garelli said.

However, India is way below the US, which is on top in
terms of economic competitiveness rankings done by the IMD.
India is at the 30th spot, slipping one notch from last year's
29th.

Among the 57 countries, in terms of economic
competitiveness, US is followed by Hong Kong, Singapore,
Switzerland, Denmark and Sweden. China too is ahead of India
ranking 20th, but has dropped from last year's 17th spot.

IMD has prepared the economic competitiveness rankings
for 2009, World Competitiveness Yearbook, on the basis of four
major factors -- economic performance, government efficiency,
business efficiency and infrastructure.

Among the other BRIC nations, Brazil and Russia are
ranked 40th and 49th, respectively, whereas they were at the
43th and 47th places in 2008.

"Only the good performance of the very large exporters
such as the US, Germany, China or Japan will send a credible
message to the world that the worst is over –- a change that
everybody will be able to believe in," Garelli noted. PTI