India ranks 3rd in global manufacturing locations among 48 nations: Report
India ranks third in the list of most-suitable locations for global manufacturing among 48 countries in terms of cost competitiveness and operating conditions, according to property consultant Cushman & Wakefield. China and the US retain the top two positions, while India has moved one place higher to rank third, the consultant said in its Global Manufacturing Risk Index (MRI) report.
In its annual ranking of the most suitable locations for global manufacturing among 48 countries in Europe, Americas, and the Asia-Pacific, the consultant said India is in top-3 countries this year and an upcoming manufacturing hub globally from an operating conditions and cost-competitiveness perspective. "In the backdrop of the Covid-19 scenario, the government has reiterated its agenda to launch fresh measures that would give a boost to setting up of a more conducive environment to make India a manufacturing hub. "At a time like this, India ranking amongst top-3 on the most suitable locations for global manufacturing comes as a shot in the arm for the country," said Anshul Jain, managing director (India and Southeast Asia), C&W. From a baseline scenario ranking that looks equally at operating conditions and cost-competitiveness but does not consider the impact from the current pandemic, China retains the top spot, followed by the US at second and India at third positions, the report said.
In cost scenario, India is at 3rd position after China and Vietnam. However, India ranks 30th in risk scenario. Countries that present lower levels of political and economic risks are ranked higher. The MRI cost scenario places greater emphasis on cost reduction to give a higher score to countries where operating costs, including labour, are lower. While China retains its lead position, Vietnam and India jumped to second and third positions, respectively, it added.
The annual Global MRI scores each country against 20 variables that make up the three final weighted rankings that cover conditions, cost and risk. The MRI 2020 includes analysis of the impact of Covid-19 on the global manufacturing sector and ranked countries by their projected ability to restart their manufacturing sectors once confinement measures are relaxed and business starts to return to normal.