Delhi is sleeping, India is slipping.

By Pranjal Sharma*

India is less competitive today than a year ago. A sobering thought as the India Economic Summit is hosted in Mumbai. The Global Competitiveness Report released by World Economic Forum shows India at 56^th position. It’s down five places since last year.

It’s becoming increasingly difficult to do business in an economy that has to meet the needs of more than a billion people. A billion restless, young and demanding people. The best way to meet their needs is to stoke the fires of entrepreneurship, to ensure that government and business serve every village in the country.

The report says the lack of infrastructure, governance and corruption is the biggest hurdle for entrepreneurs. Many say openly it’s easier to set up a project in other parts of the world than in India. Global markets may be crumbling, but ease of doing business remains good in Europe, US, China and parts of Asia.

It’s interesting that inflation and access to finance is lower down in the list of problems for Indian businessmen. It’s even more exciting to see that the global economic turbulence is not seen as a critical problem at all.

Sure, the euro zone crisis is serious. But most entrepreneurs are more worried about issues within India. I see this as a positive.

Problems within India can be solved quicker and faster than those in Europe. Boosting investment in infrastructure, improving governance and fighting corruption is easier than saving the Euro.

There is still a can-do attitude among the entrepreneurs I have been talking to. They are straining at the leash, they are raring to go, they remain undaunted by global turbulence. There is so much to do in India. Even if global markets shrink, Indian consumer demand will keep them busy for a decade.

I heard an industry leader say that New Delhi is sleeping, there is a policy making stasis. So just as well that the India Summit is being held in Mumbai. Delhi is sleeping, India is slipping, but they hope that states led by Maharashtra can reverse the decline.

*Pranjal Sharma is the Senior Executive Editor, Bloomberg UTV, India and the Vice Chair of the Global Agenda Council on India.