India Beats US To Emerge As World's Second Most Desirable Manufacturing Hub: Report
According to Cushman & Wakefield's 2021 World Manufacturing Danger Index, India has surpassed the United States as the world's second most desired manufacturing destination, indicating the growing interest shown by manufacturers in India as a preferred manufacturing hub. The rising deal with India can be ascribed to India's working conditions and competitiveness in terms of value. In addition, the country's demonstrated performance in meeting outsourcing requirements has resulted in an annual increase in the ranking. This year, India and the United States traded second and third place, respectively, putting India one rank higher than last year's rankings, when India was ranked third.
India evolved as a service-based economy
Managing Director, India and Southeast Asia, Anshul Jain, stated that in the course of its development, India evolved from an agrarian to a service-based economy. The country was on the verge of skipping the manufacturing phase of the transition. Throughout and after the second wave of COVID-19, Indian manufacturing has also shown remarkable resiliency.
As economies throughout the world reopened and drove demand for vital commodities, Asia Pacific's largest industrial plants have rebounded strongly. Cushman & Wakefield's Head of Perception & Evaluation, Asia Pacific, Dominic Brown, commented that the different markets also profited from increased demand for imported products such as microprocessors, laptop chips, and prescription medications.
Nonetheless, according to Brown, apparel manufacturers throughout the world are still grappling with poor demand, which is affecting economies like India and Indonesia, which have also been dealing with the virus's second and third waves. The index ranks the most favourable locations for international manufacturing in 47 countries across Europe, the Americas, and the Asia Pacific. The rankings are determined by four important parameters, the country's ability to restart manufacturing, the business climate, which includes the availability of expertise and manpower, market access, labour costs, and political, financial, and environmental risks.
Plant relocations from China to other regions of Asia, owing to a previously established basis in the pharmaceutical, chemical, and engineering industries, which continue to be at the centre of US-China commerce problems, are linked to the rating disparity between the US and India.
India still has a long way to go
Despite being among the top three nations in terms of baseline and value state of affairs rankings, India still has a long way to go in areas like managing the geopolitical risks that come with doing business and its ability to restart its manufacturing sector after a devastating second wave of the COVID-19.