India's Talent Competitiveness Ranking Slides To 103rd, Lowest Among BRICS Nations

In a significant development, India's position in the 2023 Global Talent Competitiveness Index (GTCI) has dropped to 103 due to a decline in business sentiment. Among the BRICS nations, India remains the lowest-ranked member.

In the years leading up to 2020, India witnessed an increase in its talent competitiveness, but it has regressed each year since then. The downturn in business sentiment has negatively impacted India's ability to attract talent, with a current ranking of 132 out of 134. This applies to both attracting talent from overseas (ranked 127 in the external openness sub-pillar) and within the country (ranked 129 in the internal openness sub-pillar).

This decline has also resulted in an increased skills mismatch and greater challenges in finding skilled employees, placing India at 121 in both the employability sub-pillar and the vocational and technical skills pillar. On a more positive note, India excels in the global knowledge skills category, with a ranking of 69 in the talent Impact sub-pillar, driven by innovation and software development.

India's comparative strength is in the growth pillar (ranked 90), primarily attributed to the country's tertiary education and formal education programs, which are ranked at 64 and 66, respectively.

It's worth noting that Switzerland, Singapore, and the United States hold the top three positions in the GTCI. The remaining countries in the top ten for this year are Denmark, the Netherlands, Finland, Norway, Australia, Sweden, and the United Kingdom.

European countries continue to dominate the top 25, with Japan dropping out for the first time and being replaced by South Korea. Outside Europe, Australia, Canada, New Zealand, the United Arab Emirates, South Korea, and Israel have joined the top 25. The UAE has moved up from 25 to 22, while Japan has dropped out, replaced by South Korea (24).

Looking back at the past decade, a significant highlight is that the top ten countries have largely remained the same. Notably, eight of the top ten countries this year were also in the inaugural top ten in 2013.

Several of the largest emerging economies have made significant improvements in talent competitiveness over the past decade. China has transitioned from being a talent mover to a talent champion; Indonesia has shown remarkable progress in talent competitiveness, and Mexico has moved from being a talent laggard to a talent mover. Brazil is also making progress and may soon categorize as a talent mover according to the index.

Doris Sohmen-Pao, Chief Executive Officer of the Human Capital Leadership Institute (HCLI), emphasized the importance of improvements in each lever of the index, not just overall rankings. She highlighted that there have been rapid changes in talent management across industries, especially in response to technological transformations, the pandemic, and sustainability initiatives.

Sohmen-Pao, who serves as the Knowledge Partner of the GTCI this year, anticipates more visible changes in the rankings over the next decade, with Asian countries advancing in competitiveness, mirroring industry growth. This increase in the ability to attract, retain, and grow human capital is seen as a positive development.

The report titled "What a difference ten years make - and what to expect for the next decade" suggests that talent competitiveness will become even more critical for nations, cities, and organizations. The competition for talent will intensify, influenced by uncertainties, international tensions, evolving expectations from younger generations, new economic models, and emerging technologies like AI.

Cities and regions will lead the way in pioneering new talent strategies and innovation. Quality of life and sustainability will be vital assets for those aspiring to become talent hubs. Global policies focused on talent will play a crucial role in managing tensions and harnessing human and technological potential for a better, more sustainable, and equitable world.