• Friday, March 29, 2024

HEADLINE STORY

Top manufacturing hub: India pips US to second spot

Representational Image (Photo by ARUN SANKAR/AFP via Getty Images)

By: Shubham Ghosh

INDIA has gone ahead of the United States to become the world’s second-most sought-after manufacturing destination, according to real-estate consultant Cushman & Wakefield and the improvement has been mainly driven by cost competitiveness.

China has remained at the top.

The rankings were revealed by the consultant in its 2021 Global Manufacturing Risk Index, which assessed the most advantageous locations for global manufacturing among 47 nations in Europe, the Americas and Asia-Pacific (APAC).

“India takes the second spot after China as the most sought-after manufacturing destination globally,” Cushman and Wakefield said in a statement.

The US is in the third position and it is followed by Canada, Czech Republic, Indonesia, Lithuania, Thailand, Malaysia and Poland.

Last year, the US was in second position while India was in third.

According to the consultant, the rankings indicate the growing interest shown by manufacturers in India as a preferred manufacturing hub over other nations, including the US and those in the APAC region.

“The growing focus on India can be attributed to India’s operating conditions and cost competitiveness. Also, the country’s proven success in meeting outsourcing requirements has led to the increase in the ranking year-on-year,” the statement said.

The rankings are determined on the basis of four key parameters, including the country’s capacity to restart manufacturing, business environment (availability of talent/labour, access to markets), operating costs and risks (political, economic and environmental).

The baseline ranking for top manufacturing destinations is determined by a country’s operating conditions and cost effectiveness.

“This year, India and the US switched places (second and third) taking India one rank above from the rankings released last year, when India stood at the third place,” the statement said, adding, “This switch in ranking is attributed to the plant relocations from China to other parts of Asia due to an already established base in pharma, chemicals and engineering sectors, that continue to be at the centre of the US-China trade tensions.”

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