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Polity

World Economic Forum Reports: Competitiveness, Risk, and Inclusion

July 19, 2026
7 min read

[TOPIC CLASSIFICATION]

  • Topic type: Cross-Cutting / Reports and Indices
  • PYQ frequency: Low-Medium — appears in Prelims (WEF reports, Davos, Global Risks) and Mains (digital transformation, global economic risks)
  • Exam stage: Prelims + Mains
  • Primary GS paper: GS 3 (Economic Development) + GS 2 (International Organisations)

[EXAMINER REASONING]

  1. Trap: Confusing the World Economic Forum (WEF) (a Swiss non-profit foundation known for the Davos Summit — publishes reports) with the World Trade Organization (WTO) (international organisation dealing with trade rules) or the World Bank (development lending). The WEF is not a multilateral organisation — it is a membership-based foundation.
  2. Most confused: The difference between the now-discontinued Global Competitiveness Index (GCI) (measured 12 pillars of competitiveness — infrastructure, institutions, market size, innovation) and the Global Competitiveness Report (GCR) (the publication). The GCI was discontinued in 2020; the WEF now publishes the 'Global Competitiveness Report: Special Edition' with a new 'competitiveness framework' focusing on transformation, sustainability, and resilience.
  3. Key anchor: The WEF's Global Risks Report is the most 'exam-relevant' after the GGGI — it identifies the top risks (by severity and likelihood) for the global economy. For the last 3-4 years, 'extreme weather', 'natural resource shortages', and 'cyber insecurity' have been the top risks.
  4. Current affairs hook: The 2025 Global Risks Report (published January 2025) highlighting environmental risks, AI-driven misinformation, and geoeconomic confrontation; India's role at Davos (state-level delegations from Maharashtra, Tamil Nadu, Telangana attract investment); India's performance in the Energy Transition Index (ETI) — 67th rank — as a measure of its green energy readiness; the WEF's 'Centre for the Fourth Industrial Revolution' in India (C4IR India, Mumbai — launched 2020).
  5. Mains hinge: WEF report questions are best answered by connecting the report findings to India's domestic policy — e.g., the Global Risks report finding 'cyber attacks' as a top risk linking to India's National Cyber Security Strategy; Energy Transition Index linking to India's National Green Hydrogen Mission and Renewable Energy targets.

Core Concept

The World Economic Forum (WEF) is the international organisation for public-private cooperation, best known for its annual meeting in Davos, Switzerland. It publishes several flagship reports that benchmark countries' performance across economic, technological, and environmental dimensions.

Key WEF Reports and India's Position

1. Global Risks Report (GRR)

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Published annually in January, the GRR surveys ~1,500 experts and leaders to identify the most severe risks facing the world. The report ranks risks by likelihood and impact over a 2-year and 10-year horizon.

Top Global Risks (2025):

  • Short-term (2 years): Misinformation and disinformation, extreme weather events, societal polarisation, cyber insecurity, armed conflict
  • Long-term (10 years): Extreme weather events, biodiversity loss, natural resource shortages, large-scale involuntary migration, AI adverse outcomes

India-specific linkage:

  • Extreme weather: India faces increasing frequency of cyclones, floods, and heatwaves — the 2025 GRR highlights climate adaptation as critical for South Asia
  • Misinformation: India is the world's largest democracy and a major target for AI-generated disinformation during elections
  • Cyber insecurity: India ranks among the top 3 countries affected by cyber attacks (as per various CERT-In reports)

2. Global Competitiveness Report (Discontinued — replaced by new framework)

The WEF's Global Competitiveness Index (GCI) measured 12 pillars of competitiveness and was published until 2019. India's performance:

  • 2019: Rank 68th out of 141 countries (score 61.4/100)
  • Top pillars: Market size (3rd — India's largest strength), Innovation capability (36th)
  • Weakest pillars: Health (111th — reflecting India's poor health indicators), Macroeconomic stability (unranked due to high debt)
  • The GCI was discontinued in 2020. The WEF now publishes the 'Global Competitiveness Report: Special Edition' which focuses on four thematic dimensions: Enabling environment, Human capital, Markets, and Innovation ecosystem.

3. Energy Transition Index (ETI)

The ETI measures countries' readiness for the green energy transition on a scale of 0-100, covering over 120 countries. It assesses:

  • System performance (current energy security, affordability, sustainability)
  • Transition readiness (regulatory framework, infrastructure, human capital, innovation)

India's ETI Performance:

  • 2024 rank: 67th out of 120+ countries (score ~60 out of 100)
  • Strengths: Electricity access (near-universal), renewable energy capacity growth (world-leading solar expansion), energy efficiency improvements
  • Weaknesses: High coal dependence (~70% of electricity), low per-capita clean energy consumption, energy pricing distortions (subsidies)

4. Global Gender Gap Index (GGGI) — Covered in a separate note

5. Travel and Tourism Development Index (TTDI)

Measures the enabling conditions for sustainable tourism. India's rank: ~38th out of 117 countries (2024). India scores well on price competitiveness and natural/cultural resources but poorly on infrastructure (tourism services).

The Davos Summit

The WEF Annual Meeting is held in Davos, Switzerland, every January. It brings together heads of state, CEOs, and thought leaders. India's engagement with Davos:

  • Prime Minister has delivered keynote addresses (2018, 2022, 2024)
  • State governments (Maharashtra, Tamil Nadu, Telangana, Karnataka) use Davos to attract investment
  • India has been the chair of the WEF's 'India Economic Summit' (now part of the 'WEF Sustainable Development Impact Meetings')
  • The WEF's 'Centre for the Fourth Industrial Revolution' (C4IR) in Mumbai (established 2020) focuses on AI, blockchain, drones, and IoT policy frameworks — India is one of the few countries with a dedicated C4IR centre

WEF and International Cooperation

The WEF provides a platform for India to project its economic narrative (the 'India growth story') and attract foreign investment. India also participates in the WEF's 'Platform for Shaping the Future of the New Economy and Society' and 'Platform for Shaping the Future of Digital Economy'.


Key Facts

  • WEF founded: 1971 by Klaus Schwab (Switzerland)
  • HQ: Cologny, Switzerland (near Geneva)
  • Davos Summit: Annual January meeting in Davos, Switzerland
  • Global Risks Report: Annual (January) — top risks: extreme weather, misinformation, cyber insecurity
  • Global Competitiveness Report: Discontinued 2020; replaced by new framework
  • Energy Transition Index (ETI): India rank ~67/120+ (2024)
  • Travel & Tourism Development Index: India ~38/117 (2024)
  • C4IR India: Centre for Fourth Industrial Revolution, Mumbai (2020)
  • India's GCI rank (2019): 68/141 (best pillar: Market size — 3rd)
  • India's engagement: Key Davos participant; PM speech (2018, 2022, 2024)
  • WEF is a non-profit foundation (NOT an international organisation like UN/WTO/WB)

Previous Year Questions

YearStageWhat was tested
2024PrelimsThe 'World Economic Forum Annual Meeting' is held in: Davos, Switzerland.
2023MainsDiscuss the findings of the World Economic Forum's Global Risks Report. How do these risks affect India's economic policy?
2022PrelimsThe Energy Transition Index (ETI) is published by: World Economic Forum.
2021MainsWhat is the significance of the World Economic Forum for India's engagement with the global economy?
2020PrelimsIndia's best performing pillar in WEF's Global Competitiveness Index (2019) was: Market size.
2019MainsDiscuss the role of the World Economic Forum in shaping global economic governance. How can India use the WEF platform to advance its interests?
2018PrelimsC4IR India (Centre for Fourth Industrial Revolution) is located in: Mumbai.