Introduction
The Network Readiness Index (NRI) is one of the leading global indexes on application and impact of information and communication technology (ICT) in the economies all around the world. The index is developed by the World Economic Forum together with INSEAD (Institute European d’Administration des Affaires—European Institute of Business Administration) as part of their annual Global Information Technology Report. This index maps the network-based readiness landscape of 131 economies on the basis of their performance in various pillars, such as technology, people, governance, and impact. The report for the NRI has been made by the Portulan Institute, Washington DC. The institute is a non-profit research and education institute. As per the report, India has improved from 49.74 position in 2021 to 51.19 in 2022 and ranks at 61st place in the index.
About the Index
The Network Readiness Index is a composite index consisting of three levels: The primary level consists of four pillars that make up the fundamental dimensions of network readiness. Each fundamental pillar is divided into sub-pillars and makes up the second level, whereas the third level is made up from individual indicators that are distributed across different pillars. The four pillars of the primary level include about 58 variables. Technology pillar is at the heart of the network economy which seeks to assess the level of technology that is essential for a country’s participation in the global economy.
The second pillar is People because technology can only be of interest depending on the access people have to it and to the resources and skills to use it constructively. The third pillar is Governance which determines how safe individuals and firms are in the context of network economy, regulation, and digital inclusion. The last pillar is Impact. Readiness in the network economy is a means to improve the growth and well-being in a society and its economy.
The 2022 Index ranks 131 countries, including 49 high-income nations, 32 upper-middle-income nations, 36 lower-middle-income nations, and 14 low-income countries. The top 10 performers are from Europe, parts of Asia and the Pacific, and North America. Seventeen out of top 25 are from Europe, four from Eastern and South-Eastern Asia, two from Oceania, and two from North America.
Key Takeaways from the Index
Global Scenario
- The top 10 performers are–United States (1st rank, 80.30–NRI score); Singapore (2nd rank, 79.35); Sweden (3rd rank, 91); Netherlands (4th rank, 78.82); Switzerland (5th rank, 78.45); Denmark (6th rank, 78.26); Finland (7th rank, 77.90); Germany (8th rank, 75.11); Republic of Korea, (9th rank, 75.95); and Norway (10th rank, 75.68).
- The bottom ten countries are—Burkina Faso (122nd rank, 29.76–NRI Score); Ethiopia (123, 29.68); Guinea (124, 28.92); Mozambique (125, 28.18); Eswatini (126, 27.95); Lesotho (127, 27.90); Angola (128, 27.40); Democratic Republic of Congo (129, 23.34); Burundi (130, 21.11); and Chad (131, 20.12).
- Top 3 countries by region are–1. South Africa (68th rank), 2. Mauritius (72), and 3. Kenya (77) (in Africa); 1. United Arab Emirates (28), 2. Saudi Arabia (35), and 3. Qatar (42) (in Arab States); 1. Singapore (2), 2. Republic of Korea (9), and 3. Japan (13) (in Asia and Pacific); 1. Russian Federation (40), 2. Kazakhstan (58), and 3. Armenia (64) (in Commonwealth Independent States); 1. Sweden (3), 2. Netherlands (4), and 3. Switzerland (5) (in Europe); and 1. United States (1), 2. Canada (11), and 3. Chile (43) (in the Americas).
- Top 3 countries by income group are—1. United States (1),
Singapore (2), and 3. Sweden (3) (high-income economies); 1. China (23), 2. Malaysia (36), and 3. Russian Federation (40) (upper-middle-income economies); 1. Ukraine (50), Indonesia (59), and 3. India (61) (lower middle-income economies); 1. Rwanda (101), Zambia (113), and Uganda (116) (low-income economies). - The US has moved up three positions from the last year’s emerging as the most network ready country.
- Singapore experiences the most positive movement among top 10 economies.
- Singapore is followed by Sweden and Netherlands that have maintained their leadership positions ranking 3rd and 4th.
- Switzerland is improving its position from 2021 and has claimed the 4th spot.
- Republic of Korea has moved up from 12th spot to 9th spot. Other countries that make it in the top 10 are Denmark, Finland, Germany, and Norway.
- The Republic of Korea leads in People pillar (1st) supported by its high level of digital technology. Norway (1st), Denmark (2nd) and Finland (3rd) continue to dominate the Governance pillar.
Indian Scenario
- India ranks 61st out of 131 nations. The main strengths are people, greatest scope in improvements, and governance.
- India ranks 56th in terms of Technology, 46th in terms of People, 83rd in terms of Governance, and 62nd in terms of Impact.
- The performance at the sub-pillar level is strongest in relation to economy, individual and government though more could be done to improve the economic performance, quality of life, inclusion, etc.
- India rankings by sub-pillars are Economy (23rd); Individuals (30th); Governments (39th); Content (49th); Access (59th); Future Technologies (59th); Businesses (64th); Trust (73rd); Regulation (80th); SDG Contribution (80th); Inclusion (97th); and Quality of Life (97th).
- India scores vs. averages of its income group and region, overall and by pillar are NRI score 51.19 (India), 40.94 (lower-middle-income countries), 55.18 (Asia & Pacific); Technology 47.84 (India), 37.28 (lower-middle-income countries), 51.78 (Asia & Pacific); People 50.90 (India), 35.42 (lower-middle income countries), 50.21 (Asia & Pacific); Governance 50.96 (India), 45.00 (lower-middle-income countries), 59.66 (Asia & Pacific); and Impact 55.07 (India), 46.09 (lower-middle-income countries), 59.07 (Asia & Pacific).
- The strongest indicators of India are Artificial Intelligence (AI) talent concentrations 1st, international internet bandwidth 2nd, mobile bandwidth and internet traffic within country 2nd, annual investment in telecom services 3rd, domestic market size 3rd, ICT services exports 4th, building internet subscribers 5th, AI scientific publication 5th, cybersecurity 15th.
- The weakest indicators are internet access in schools 71st,
e-commerce legislation 87th, gender gap internet usage 102nd, online access to financial accounts 117th, and happiness 121st.
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