Want of self-belief robs India of global top rank in Resilience Index

At 119 rank, the country has been cited as having formidable tangle of problems

GN Bureau | April 2, 2015


#India   #Norway   #Sweden   #resilience   #infrastructure   #global index  

Despite being in toppers list of economic powers of the world, India has been ranked 119 out of 130 countries on an index of business resilience of nations based on economic, risk quality and supply chain factors. The country has in fact dropped seven ranks from 2014 list.

Norway is at the top of FM Global Resilience Index list 2015 (http://www.fmglobal.com/assets/pdf/Resilience_Methodology.pdf) , for being the best country for companies seeking to avoid disruptions in their global supply chain operations.

"The exception is the country's relatively low exposure to natural hazards, which suggests that India's destiny, to an encouraging extent, lies in its own hands," a report on the index said.

On over ratings India is at 119 "despite its scope and global potential" and on the economic parameter, which takes into account gross domestic product, political risk and oil intensity, the country is ranked 115, the same as in 2014. In the risk quality factor, India is ranked 109 for its quality of natural hazard and fire risk management, a slight improvement from its 113th rank in 2014.

In supply chain, which looks at corruption control, infrastructure and local supplier quality, the country is ranked 89th, falling 11 notches from the previous year.

"Economically, (India) suffers from a formidable tangle of problems. A third of its population still lives in extreme poverty - one of the highest incidences outside sub-Saharan Africa. The implementation of economic reforms has been identified as a priority by India's new government," the report said adding that the country ranks poorly across eight of the nine drivers of resilience.

Among the top 10 countries that are most resilient, Norway is followed by Switzerland (2), Netherlands (3), Ireland (4), Luxembourg (5), Germany (6), Qatar (7), Canada (8), Finland (9) and the US (10).

The index framework
The overall composite index is, by design, a simplified, summary measure of resilience. The FM Global Resilience Index provides an indication of relative business resilience to supply chain disruption across countries. In combination with additional information, this provides executives with a source of guidance on supply chain risk when making decisions over the destination of physical investments.

The structure of the index enables business executives to identify the sources of strength and vulnerability in a country’s supply chain risk, both broadly across factors (economic, risk quality or supply chain), and more precisely across the nine drivers. Such analysis offers opportunities to managers seeking to improve their company’s supply chain risk profile.

Taiwan has been ranked 37 and has jumped 52 places in the annual ranking; more than any other country. Its strong capacity for innovation is underpinned by world-class infrastructure, a highly efficient goods market and a strong higher education sector. Its rise in the 2015 FM Global Resilience Index is due mainly to a substantial improvement in the country’s commitment to risk  anagement, as it relates both to natural hazard risk and fire risk. Given the country’s location at the western edge of the Philippine sea plate, this is a welcome development.

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