India beats US to emerge as world's second most desirable manufacturing hub: Report

According to Cushman & Wakefield's 2021 World Manufacturing Danger Index, India has surpassed United States as world's second most desired manufacturing destination, indicating growing interest shown by manufacturers in India as a preferred manufacturing hub.  rising deal with India can be ascribed to India's working conditions and competitiveness in terms of value. In dition, country's demonstrated performance in meeting outsourcing requirements has resulted in an annual increase in ranking. This year, India and United States tred second and third place, respectively, putting India one rank higher than last year's rankings, when India was ranked third.

India evolved as a service-based economy

Managing Director, India and Souast Asia, Anshul Jain, stated that in course of its development, India evolved from an agrarian to a service-based economy. country was on verge of skipping manufacturing phase of transition. Throughout and after second wave of COVID-19, Indian manufacturing has also shown remarkable resiliency. 

As economies throughout world reopened and drove demand for vital commodities, Asia Pacific's largest industrial plants have rebounded strongly. Cushman & Wakefield's He of Perception & Evaluation, Asia Pacific, Dominic Brown, commented that different markets also profited from increased demand for imported products such as microprocessors, laptop chips, and prescription medications. 

Noneless, according to Brown, apparel manufacturers throughout world are still grappling with poor demand, which is affecting economies like India and Indonesia, which have also been dealing with virus's second and third waves.  index ranks most favourable locations for international manufacturing in 47 countries across Europe, Americas, and Asia Pacific.  rankings are determined by four important parameters,  country's ability to restart manufacturing, business climate, which includes availability of expertise and manpower, market access, labour costs, and political, financial, and environmental risks.

Plant relocations from China to or regions of Asia, owing to a previously established basis in pharmaceutical, chemical, and engineering industries, which continue to be at centre of US-China commerce problems, are linked to rating disparity between US and India.

India still has a long way to go

Despite being among top three nations in terms of baseline and value state of affairs rankings, India still has a long way to go in areas like managing geopolitical risks that come with doing business and its ability to restart its manufacturing sector after a devastating second wave of COVID-19.