The fifth edition of the India State Competitiveness Report 2013 is based on the Microeconomic Diamond Model laid down by celebrated management guru, Michael E. Porter. The core of the model is based on four pillars of Competitiveness i.e. factor conditions, demand conditions, context for strategy & rivalry and supporting and related industries. These four pillars are interlinked with one another and are instrumental in determining the overall competitiveness of any economy.
The report categorizes the states based on per capita GDP under the six heads of - City States, Innovation Driven Economies, Transition Economies, Investment Driven Economies, Changeover Economies and Most Emerging Economy. These categories have been created by determining whether the state economies are factor-driven, investment-driven or innovation-driven.
Delhi leads the rank of city states followed by Goa. Among innovative driven economies, Maharashtra has emerged as the most competitive state followed closely by Gujarat. Haryana comes in at the third spot.
Among transition economies, Tamil Nadu leads the ranking followed by Himachal Pradesh and Punjab. Mizoram takes top spot among investment based economies followed by Andhra Pradesh in the second spot and Sikkim in the third. Among the changeover/evolving economies, Orissa is the most competitive followed by Rajasthan and J&K.
Finally, Uttar Pradesh takes top spot in the emerging economies ranking followed closely by Bihar.
The report suggests strategies that states can employ to further growth. The top among these are a focus on better governance, greater investments in infrastructure, bettering the education outcome and improvements in healthcare delivery.
Commenting on this year’s ranking, Dr. Amit Kapoor, Honorary Chairman, Institute for Competitiveness says, “The remedy to the unequal growth of India lies in the enhancement of the competitiveness quotient of the states, for they collectively comprise the whole nation. The focus of states and policy makers should be on the creation of wealth with means that are sustainable for the environment and beneficial to the communities and most importantly inclusive for most if not all sections of the society”.
Institute for Competitiveness, India is the Indian knot in the global network of the Institute for Strategy and Competitiveness at Harvard Business School. IFC is an international initiative centered in India, dedicated to enlarging and purposeful disseminating of the body of research and knowledge on competition and strategy, as pioneered over the last 25 years by Professor Michael Porter of the Institute for Strategy and Competitiveness at Harvard Business School.
The institute studies competition and its implications for company strategy; the competitiveness of nations, regions & cities and thus generate guidelines for businesses and those in governance; and suggests and provides solutions for socio-economic problems.