New Delhi: India has made it difficult for the United States (US) to be the most sought-after manufacturing destination globally, mainly driven by cost competitiveness, according to Cushman & Wakefield real estate consultants.
China remains in number one position, the consultant said in the Global Manufacturing Risk Index 2021, which assessed the most profitable location for global manufacturing among 47 countries in Europe, America and Asia-Pacific (APAC).
“India took second place after China as the most sought-after manufacturing destination globally,” said Cushman and Wakefield in a statement.
The US is in third place, followed by Canada, Czech Republic, Indonesia, Lithuania, Thailand, Malaysia and Poland.
In last year’s report, the US was in second place while India was ranked third.
Consultants say that this shows the increasing interest shown by producers in India as the preferred manufacturing center than other countries, including the US and those in the APAC region.
“The growing focus on India can be associated with Indian operating conditions and cost competitiveness.
Also, the country’s success that is proven in meeting outsourcing requirements has led to an increase in year-on-year,” said the statement.
Ranking in the report is determined based on the four main parameters, including the state’s ability to restart manufacturing, business environment (the availability of talent / labor, access to markets), operating costs, and risk (politics, economy and the environment).
The initial rating for manufacturing purposes is determined based on the operating conditions of a country and cost effectiveness.
“This year, India and the US switch places (second and third) took the rating of India above from the rank released last year, when India stood in third place.” The switch switch is associated with the relocation of plants from China to another.
Asia parts due to established bases in Pharma, chemicals and engineering sectors, which continue to be at the US-Chinese trade tension center, “he said.
As far as the scenario of running ranked fees, India continued to keep the third spot like last year, while Vietnam was pushed to position Fourth of the third.
“Despite being among the top three countries in the ranking of the initial scenario and costs, there is a long way for India to cross regions such as managing geopolitical risks involved in running their business and ability to restart their manufacturing business after the second wave destroys the virus Covid-19, “Cushman said.