Switzerland has retained its position as the world’s most competitive economy in the 2025 IMD World Competitiveness Ranking (WCR), with a perfect score of 100. Singapore and Hong Kong follow closely in second and third, with scores of 99.44 and 99.22, respectively. The annual ranking evaluates 69 economies based on four key pillars: economic performance, government efficiency, business efficiency, and infrastructure.
India, however, slipped two places to rank 41st in 2025, down from 39th in 2024. While the country continues to show resilience in areas like business efficiency (ranked 25th) and government efficiency (ranked 45th, unchanged), its economic performance saw a notable drop, from 20th in 2024 to 27th in 2025. The report cites infrastructure gaps and slower improvement in economic indicators as areas requiring urgent attention.
The IMD WCR also emphasizes that traditional determinants such as GDP growth and trade statistics, while still relevant, are no longer sufficient to define a nation’s competitiveness. The 2025 edition highlights the growing importance of digital readiness, green transition management, and resilience in shaping national economies.
“Competitiveness today goes beyond numbers — it reflects the quality of life and well-being of people,” the report says, adding that both governments and businesses must work in tandem to achieve long-term success.
The rankings are derived from a mix of hard data and executive perceptions. Statistical indicators are sourced from national and international organizations, while perception data comes from an executive opinion survey conducted between February and May 2025.
New entrants in the 2025 ranking include Kenya, Namibia, and Oman, expanding the global scope of the index. The top 10 rankings are dominated by advanced economies, with the UAE, Taiwan, Ireland, Sweden, Qatar, and the Netherlands also making the list.
India’s performance signals a need for renewed policy focus on infrastructure, institutional efficiency, and fostering innovation to keep pace with global economic leaders.
