India became the second most sought-after manufacturing hub globally. India pips The United States to rank second on the list. According to real estate consultant Cushman & Wakefield, it has been driven mainly by cost competitiveness.
China tops the list. The consultant said in its 2021 Global Manufacturing Risk Index, which assessed the most advantageous locations for global manufacturing among 47 countries in Asia-Pacific (APAC), Europe, the Americas. Cushman and Wakefield said in a statement.
“India takes the second spot after China as the most sought-after manufacturing destination globally.”
Top 10 Manufacturing Hub
China bags the first spot, followed by India. The United States of America is in the third position, followed by Canada, Czech Republic, Indonesia, Lithuania, Thailand, Malaysia, and Poland. The US was in the second position while India was at third in the last year’s report.
The consultant said that it indicates the growing interest of manufacturers in India as a preferred manufacturing hub over other countries, including the US and those in the APAC region. As per the statement,
“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.”
In the reports, the rankings are determined based on four key parameters. It includes the country’s capability to restart manufacturing, business environment (availability of talent/labor, access to markets), operating costs, and the risks (political, economic, and environmental). The baseline ranking for the top manufacturing country’s is determined based on a country’s operating conditions and cost-effectiveness. It said,
“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. 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 center of the US-China trade tensions.”
As far as the cost scenario ranking goes, India continued to retain the third spot like last year, while the country Vietnam is pushed to the fourth position from the third. Cushman said,
“Despite being among the top three countries in the baseline and cost scenario rankings, there is a long road for India to traverse when it comes to areas like managing the geopolitical risks involved in running a business and its ability to restart its manufacturing business after a devastating second wave of the COVID-19 virus.”
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