Talent Competitiveness: India
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Global Talent Competitiveness Index
2023
Nov 16, 2023: The Times of India
In the 2023 Global Talent Competitiveness Index, India’s rank slipped to 103rd spot out of 134 countries. Here’s why India is struggling to attract and retain talent from home and abroad
Officials may tout India as the world’s fastest-growing major economy poised to become the next China, but if the country’s ability to attract and retain top talent is anything to go by, that will remain a distant dream.The latest reality check comes from the Global Talent Competitiveness Index by business school INSEAD in which India’s ranking fell from 101st spot out of 133 countries in 2022 to 103rd place out of 134 in 2023. In 2013, India was ranked at 83rd place out of 103 countries.What’s worrying is that India has the lowest rank among the BRICS (Brazil, Russia, India, China and South Africa) countries on the index.What is the talent index all about?The index — which measures how countries grow, attract and retain talent — is an annual benchmarking report published by INSEAD.It defines talent competitiveness as a set of policies and practices that enable a country to develop, attract and empower “the human capital that contributes to productivity and prosperity”.
The index is calculated based on two metrics — input and output. The input framework measures countries’ regulatory and business environments, as well as what they are doing to attract, grow and retain talent. The output framework measures the quality of talent in a country.How did India do in various metrics?From 2013 to 2020, India saw its talent competitiveness increase, but it has regressed in each of the three years since, as per the report.A major reason for this fall in the rankings is a slump in business sentiment, which has had a detrimental effect on the ability to attract talent (now ranked 132nd out of 134) — whether that is talent from overseas (127th in the external openness) or from within the country (129th in internal openness).This has also led to an increased skills mismatch, and a greater difficulty in finding skilled employees, pushing India to 121st in both the employability sub-pillar and the vocational and technical skills pillar.Meanwhile, global knowledge skills, the second of the output-related pillars, is India’s best-performing area, where innovation and software development are driving its 69th position in the talent impact sub-pillar.The country also has a comparative strength in the grow pillar (90th), which can primarily be attributed to the impact of the country’s tertiary education and programmes for formal education and lifelong learning — ranked 64th and 66th, respectively.Which country topped the index?Switzerland retained the top spot in the index, marking a decade of domination in the competition to get the creamy layer of human capital. Singapore and the US rounded out the top three slots in the list dominated by European nations — seven out of the top 10.Switzerland placed first in enabling and retaining talent categories due to its high levels of social protection and its natural environment. Quality of life and sustainability will be a “critical asset for those aiming at becoming talent hubs” over the next decade, according to the report.Singapore’s “highly educated labour force and innovative economy” vaulted it to the best overall in global knowledge skills, while the US placed first in growing talent due to its “world-class universities and business schools”.
Among other countries, the UK placed 10th overall on the strength of its tertiary education and had dominant showings in general knowledge skills and talent growth despite low marks in vocational and technical skills.Elsewhere, China placed first among the BRICS nations. Its status as “the global leader in matching the skills of people with the needs of the economy” was anchored by its “Achilles heel” in attracting talent, which contributed to its score of 40th overall.What does the future look like?Competition for talent among nations may grow even fiercer over the next 10 years, according to the report, which cited rising uncertainties in trade, investment and geopolitics. The report placed emphasis on the ability of countries, cities and organisations to innovate and project soft power.This may create further talent disparity between rich and poor countries as the “the wealth/talent correlation remains strong”, as per INSEAD.
The report also found that Covid strengthened gender inequality, as parity in high-skilled jobs decreased over the past three years from a 2019 peak.Artificial intelligence may exacerbate this trend as “unqualified or low-qualified labour will bear much of the additional pressure, while new categories of workers, some with higher skills, will suffer from stronger competition from algorithms and specialised equipment”.IMD report shows India’s stumblesIndia’s ranking also fell in the 2023 World Talent Ranking released by the International Institute for Management Development (IMD) in September. Out of 64 economies, India slipped four spots to 56th position, compared to its 52nd position in 2022.Though the report acknowledged India’s infrastructure improvements, it underscored the need for further enhancement in talent competitiveness.However, the IMD praised India’s talent pool for its agility, tech-savviness and readiness for the future. “Indians are seen as well-prepared for global roles, thanks to their linguistic diversity and international exposure,” it said.
The IMD World Talent Ranking considers various factors, including quality of life, statutory minimum wage, and primary and secondary education. India fares reasonably well in future readiness, ranking 29th.However, the report highlighted India’s weak educational system, ranking it second to last (63rd) in quality. This is attributed to unequal access to education, particularly in rural areas, and insufficient investment.India needs comprehensive policies, including salary increases and improvements in quality of life, safety and environmental friendliness to retain talent domestically, as per the report.In the IMD index, Switzerland came out on top, while Luxembourg was in second spot, followed by Iceland, Belgium and the Netherlands.With inputs from Bloomberg, Scroll and Mint.
