New Delhi, May 30 (KNN) India has moved up one place to rank 43rd most competitive economy on the back of its robust economic growth, a large labour force, and its huge market size, while Singapore has toppled the US to grab the top position, a global study showed.

According to the IMD World Competitiveness Rankings, the United States slipped from the top spot, Hong Kong SAR has held onto its second place.

Economists regard competitiveness as vital for the long-term health of a country’s economy as it empowers businesses to achieve sustainable growth, generate jobs and, ultimately, enhance the welfare of citizens.

The effects of rising fuel prices influenced the ranking, with inflation reducing competitiveness in some countries. Stronger trade revenues helped oil and gas producers such as this year’s biggest climber Saudi Arabia, which jumped 13 places to 26th, and Qatar, which entered the top 10 for the first time since 2013, said the release.

The IMD World Competitiveness Rankings, established in 1989, incorporate 235 indicators from each of the 63 ranked economies to evaluate their ability to foster an environment where enterprises can achieve sustainable growth, generate jobs and increase welfare for its citizens.

“In a year of high uncertainty in global markets due to rapid changes in the international political landscape as well as trade relations, the quality of institutions seem to be the unifying element for increasing prosperity. A strong institutional framework provides the stability for business to invest and innovate, ensuring a higher quality of life for citizens,” said Arturo Bris, IMD Professor and Director of IMD World Competitiveness Center, the research center which compiles the ranking.