India goes past US as second most sought manufacturing hub

31 Aug 2021 CW Team

India has been ranked as the world's second-most-desired manufacturing hub after China. The country surpassed the US to secure the second spot.

India could benefit from relocations from China to other parts of Asia because it already has a strong base in engineering, pharmaceuticals, and chemicals, all of which are still at the centre of trade tensions between the US and China according to Cushman and Wakefield 2021 Global Manufacturing Risk Index.

According to the report, reforms in land and labour laws are essential to India's success as a global manufacturing hub.

The baseline scenario prioritises a country's operating conditions as well as its cost competitiveness.

Automotive manufacturing and Electronic components are led by Jiangsu and Guangdong, while chemicals and natural resources are concentrated in Liaoning and Zhejiang. Because of its large consumer market and state and federal incentives, the United States is a desirable hub.

Indonesia outspent India and Vietnam in terms of cost, while China maintained its lead. Indonesia has risen to second place from fifth while India has dropped to third place.

Falling rents in Jakarta have aided the country's cost-effectiveness, which has pushed it up to three places. While Vietnam's wages are lower than China's, the country is increasingly competing with lower-cost countries. In the meantime, Thailand's cost profile has pushed it up to fifth place from eighth. Colombia rose from 15th to eighth place, with labour costs compared to those in Asia.

On the other hand, India is nowhere near the top of the risk scenario that considers lower levels of political and economic risks.

India is assembled with Colombia, Italy, Belgium, Malaysia, Romania, Indonesia, Bulgaria, Thailand, Hungary, Peru and Vietnam in the third quartile of the rankings. China leads the first quartile, followed by Canada, Finland, the United States and the Czech Republic. Lithuania, France, the Netherlands, Japan, Spain, Poland and the United Kingdom are among the countries in the second quartile.

India, like Peru, Philippines, Sri Lanka, Indonesia, Mexico, Vietnam, Bulgaria, Thailand, Tunisia, and Venezuela, is in the fourth quartile when it comes to the bounce back rating, which considers a country's ability to restart its manufacturing sector.

Image Source

India has been ranked as the world's second-most-desired manufacturing hub after China. The country surpassed the US to secure the second spot. India could benefit from relocations from China to other parts of Asia because it already has a strong base in engineering, pharmaceuticals, and chemicals, all of which are still at the centre of trade tensions between the US and China according to Cushman and Wakefield 2021 Global Manufacturing Risk Index. According to the report, reforms in land and labour laws are essential to India's success as a global manufacturing hub. The baseline scenario prioritises a country's operating conditions as well as its cost competitiveness. Automotive manufacturing and Electronic components are led by Jiangsu and Guangdong, while chemicals and natural resources are concentrated in Liaoning and Zhejiang. Because of its large consumer market and state and federal incentives, the United States is a desirable hub. Indonesia outspent India and Vietnam in terms of cost, while China maintained its lead. Indonesia has risen to second place from fifth while India has dropped to third place. Falling rents in Jakarta have aided the country's cost-effectiveness, which has pushed it up to three places. While Vietnam's wages are lower than China's, the country is increasingly competing with lower-cost countries. In the meantime, Thailand's cost profile has pushed it up to fifth place from eighth. Colombia rose from 15th to eighth place, with labour costs compared to those in Asia. On the other hand, India is nowhere near the top of the risk scenario that considers lower levels of political and economic risks. India is assembled with Colombia, Italy, Belgium, Malaysia, Romania, Indonesia, Bulgaria, Thailand, Hungary, Peru and Vietnam in the third quartile of the rankings. China leads the first quartile, followed by Canada, Finland, the United States and the Czech Republic. Lithuania, France, the Netherlands, Japan, Spain, Poland and the United Kingdom are among the countries in the second quartile. India, like Peru, Philippines, Sri Lanka, Indonesia, Mexico, Vietnam, Bulgaria, Thailand, Tunisia, and Venezuela, is in the fourth quartile when it comes to the bounce back rating, which considers a country's ability to restart its manufacturing sector. Image Source

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