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Global Manufacturing Risk Index

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  • 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.

Key Points

  • 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.
  • Recent Initiatives to Improve Manufacturing Sector in India:

Source: IE

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