India pips US to rank 2nd in list of most attractive manufacturing hub globally; China 1st

Within the final 12 months’s report, the US was at second place whereas India ranked third. (Consultant picture)

NEW DELHI: India has overtaken america (US) to turn out to be the second-most sought-after manufacturing vacation spot globally, pushed primarily by price competitiveness, in accordance with actual property guide Cushman & Wakefield.
China stays at primary place, the guide mentioned in its 2021 World Manufacturing Danger Index, which assessed essentially the most advantageous places for world manufacturing amongst 47 international locations in Europe, the Americas and Asia-Pacific (APAC).
“India takes the second spot after China as essentially the most sought-after manufacturing vacation spot globally,” Cushman and Wakefield mentioned in a press release.
The US is at third place, adopted by Canada, Czech Republic, Indonesia, Lithuania, Thailand, Malaysia and Poland.
Within the final 12 months’s report, the US was at second place whereas India ranked third.
The guide mentioned that this means the rising curiosity proven by producers in India as a most popular manufacturing hub over different international locations, together with the US and people within the APAC area.
“The rising concentrate on India may be attributed to India’s working situations and value competitiveness. Additionally, the nation’s confirmed success in assembly outsourcing necessities has led to the rise within the rating year-on-year,” the assertion mentioned.
The rankings within the report are decided based mostly on 4 key parameters, together with the nation’s functionality to restart manufacturing, enterprise surroundings (availability of expertise/labour, entry to markets), working prices, and the dangers (political, financial and environmental).
The baseline rating for prime manufacturing locations is decided on the premise of a rustic’s working situations and value effectiveness.
“This 12 months, India and the US switched locations (second and third) taking India one rank above from the rankings launched final 12 months, when India stood on the third place.
“This swap in rating is attributed to the plant relocations from China to different components of Asia as a consequence of an already established base in pharma, chemical substances and engineering sectors, that proceed to be on the centre of the US-China commerce tensions,” it mentioned.
So far as the price state of affairs rating goes, India continued to retain the third spot like final 12 months, whereas Vietnam is pushed to the fourth place from the third.
“Regardless of being among the many top-three international locations within the baseline and value state of affairs rankings, there’s a lengthy street for India to traverse in terms of areas like managing the geopolitical dangers concerned in operating enterprise and its capacity to restart its manufacturing enterprise after a devastating second wave of the Covid-19 virus,” Cushman mentioned.