Global competitiveness is one of those terms that appears frequently in boardroom discussions, government policy papers and industry forums. Yet it often means different things to different people. For some, it is about attracting investments. For others, it is about exports, manufacturing or ease of doing business. In reality, competitiveness is much broader. It reflects a country’s ability to help its businesses compete successfully in global markets over the long term.
India has made remarkable progress over the past decade. Investments in infrastructure, manufacturing, digital public infrastructure and entrepreneurship have significantly strengthened the country’s economic foundation. As global supply chains diversify, India has emerged as a credible destination for manufacturing and investment. The challenge now is no longer about becoming globally competitive. It is about sustaining that competitiveness in an increasingly dynamic global economy.
In my experience, sustained competitiveness is never the result of one policy decision or one corporate initiative. It is created when government and industry move in the same direction. Their roles are different, but their objective is the same, building an ecosystem where Indian businesses can compete confidently with the best in the world.
One observation has stayed with me through my interactions with manufacturing and business leaders over the years. Companies rarely lose their competitive edge because they lack ambition. More often, they lose it because they stop improving. Processes remain unchanged, investments in people slow down, innovation takes a back seat and governance becomes a compliance exercise rather than a strategic advantage.
A few years ago, I interacted with the leadership team of a manufacturing company that had invested significantly in expanding production capacity. Yet customer complaints continued to rise. The issue wasn’t the technology or the machinery. It was inconsistent production planning, weak process discipline and insufficient investment in people. Once these operational issues were addressed, productivity improved and customer confidence returned. The experience reinforced an important lesson for me. Competitiveness is rarely built through capital investment alone. It is built through continuous improvement.
If India is to sustain its global competitiveness over the next decade, both government and industry have important responsibilities.
What Government Can Prioritise
Government’s role is to create an environment where businesses can compete globally. Continued focus on a few structural priorities can significantly strengthen India’s long-term competitiveness.
- Promote skill-based education, vocational training and stronger industry-academia collaboration to create a future-ready workforce.
- Continue investing in roads, railways, ports and multimodal logistics to reduce transportation costs and improve supply chain efficiency.
- Improve industrial energy competitiveness by reducing distribution losses and rationalising cross-subsidisation.
- Encourage research, innovation and commercialisation through easier access to risk capital, particularly for MSMEs and emerging technology businesses.
- Simplify the regulatory and tax environment to encourage long-term investment and improve ease of doing business.
- Continue supporting MSMEs through policies that strengthen competitiveness, technology adoption and market access.
What Industry Must Do
Government can create opportunities. Industry must convert those opportunities into a competitive advantage.
Businesses that aspire to compete globally need to look beyond cost as their primary differentiator. Increasingly, customers evaluate suppliers on reliability, governance, compliance, innovation and their ability to deliver consistently.
To remain globally competitive, businesses should focus on:
- Investing consistently in research, technology, automation and digital transformation.
- Building strong governance, legal compliance and ethical business practices that inspire confidence among customers and investors.
- Creating internal learning and skill development programmes while offering competitive career opportunities to attract and retain talent.
- Maintaining an uncompromising focus on quality, productivity and on-time delivery.
- Expanding into international markets and participating more actively in global supply chains through cluster-based manufacturing and collaboration.
- Strengthening financial discipline and succession planning to build resilient organisations capable of sustaining long-term growth.
Global competitiveness is not achieved once and preserved forever. It must be earned continuously through better policies, stronger businesses and a willingness to improve every day.
India has already demonstrated its ability to compete on scale. The next phase of our journey will depend on how consistently we invest in productivity, innovation, skills and governance. When government creates the right environment and industry responds by building stronger, more innovative and globally respected businesses, competitiveness becomes a sustainable advantage rather than a temporary achievement.
About the Author
Avneep L. Mehta is a Partner at M O J & Associates and has over 16 years of experience advising businesses on audit, valuation, governance and risk advisory. His professional experience spans listed companies, large enterprises and growth-stage businesses across multiple sectors.