India Is In Top 3 Manufacturing Hub
Cushman & Wakefield annual ranking of the most suitable locations for global manufacturing has ranked India in top 3 among 48 countries assessed I in Europe, the Americas and Asia Pacific.
The annual Global Manufacturing Risk Index (MRI) scores each country against 20 variables that make up the three final weighted rankings which cover conditions, cost and risk. The data underpinning the MRI comes from a variety of reliable sources, including the World Bank, UNCTAD and Oxford Economics.
India is in top 3 this year and the upcoming manufacturing hub globally from an operating conditions and cost competitiveness perspective.
From a baseline scenario ranking that looks equally at operating conditions and cost competitiveness but does not consider impact from the current pandemic, China retains the top spot, followed by the United States in second and India in third position.
The Manufacturing Risk Index (MRI) cost scenario places greater emphasis on cost reduction to give a higher score to countries where operating costs, including labor are lower. While China retains its lead position, Vietnam and India jumped to second and third positions respectively.
The MRI’s risk scenario favors countries presenting lower levels of economic and political risk, while considering rising geo-political risk. Canada and the United States ranked first and second in 2020, supported by their natural resources, ample labor pools, federal and state incentives, large consumer markets and infrastructure, especially in a less predictable and less secure global environment.
Transparency, investments in infrastructure networks and the absence of geopolitical concerns contributed to higher ranking positions for both Singapore and Germany, third and fourth respectively.
On the basis of their projected ability to restart their manufacturing sectors once confinement measures are relaxed and business starts to return to normal, several countries in Asia Pacific including China, Thailand, South Korea, Australia and Japan are assessed to be in the top quartile in terms of a fast recovery or the “bounce-back-ability”.