Global Manufacturing Risk Index
- 25 Aug 2021
- 3 min read
Why in News
Recently, India has overtaken the United States (US) to become the second-most sought-after manufacturing destination globally, driven mainly by cost competitiveness in the Global Manufacturing Risk Index 2021.
- In last year’s report, the US was at second position while India ranked third.
- About the Global Manufacturing Risk Index:
- It assesses the most advantageous locations for global manufacturing among 47 countries in Europe, the Americas and Asia-Pacific (APAC).
- The rankings in the report are determined based on four key parameters:
- Country’s capability to restart manufacturing,
- Business environment (availability of talent/labour, access to markets),
- Operating costs,
- Risks (political, economic and environmental).
- The index is released by the US-based property consultant Cushman & Wakefield.
- China remains at number one position and the US is at third position, in the Global Manufacturing Risk Index, 2021.
- The improvement in ranking indicates the growing interest shown by manufacturers in India as a preferred manufacturing hub over other countries, including the US and those in the APAC region.
- Factors Responsible for Improvement in India’s Ranking:
- The growing focus on India can be attributed to India’s operating conditions and cost competitiveness.
- India has a huge population, which means a younger workforce with innovative capabilities that has the potential to fuel the country’s manufacturing sector.
- The improvement in ranking can be also attributed to plant relocations from China to other parts of Asia due to an already established base in pharma, chemicals and engineering sectors.
- Also, these factors continue to be at the centre of the US-China trade tensions.
- Recent Initiatives to Improve Manufacturing Sector in India: