Source: Indian Express
List of Contents
What is the News?
The Global Manufacturing Risk Index 2021 has been released.
About Global Manufacturing Risk Index:
- Released by: US-based property consultant Cushman & Wakefield
- Purpose: To assess and rank the most advantageous locations for global manufacturing among 47 countries in Europe, the Americas and Asia-Pacific (APAC).
- Parameters: The ranking is 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).
Key Findings of the Index:
- India has overtaken the United States (US) to become the second-most sought-after manufacturing destination globally.
- China remains at the number one position and the US is now at the third position.
Reasons for India’s improvement in ranking:
- India’s improvement in ranking 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 such as India where there is an already established base in pharma, chemicals and engineering sectors.
- However, reforms in land and labour laws are critical to ensure India’s success as a global manufacturing hub.