India goes past US as second most sought manufacturing hub

31 Aug 2021 CW Team

India has been ranked as the world's second-most-desired manufacturing hub after China. The country surpassed the US to secure the second spot.

India could benefit from relocations from China to other parts of Asia because it already has a strong base in engineering, pharmaceuticals, and chemicals, all of which are still at the centre of trade tensions between the US and China according to Cushman and Wakefield 2021 Global Manufacturing Risk Index.

According to the report, reforms in land and labour laws are essential to India's success as a global manufacturing hub.

The baseline scenario prioritises a country's operating conditions as well as its cost competitiveness.

Automotive manufacturing and Electronic components are led by Jiangsu and Guangdong, while chemicals and natural resources are concentrated in Liaoning and Zhejiang. Because of its large consumer market and state and federal incentives, the United States is a desirable hub.

Indonesia outspent India and Vietnam in terms of cost, while China maintained its lead. Indonesia has risen to second place from fifth while India has dropped to third place.

Falling rents in Jakarta have aided the country's cost-effectiveness, which has pushed it up to three places. While Vietnam's wages are lower than China's, the country is increasingly competing with lower-cost countries. In the meantime, Thailand's cost profile has pushed it up to fifth place from eighth. Colombia rose from 15th to eighth place, with labour costs compared to those in Asia.

On the other hand, India is nowhere near the top of the risk scenario that considers lower levels of political and economic risks.

India is assembled with Colombia, Italy, Belgium, Malaysia, Romania, Indonesia, Bulgaria, Thailand, Hungary, Peru and Vietnam in the third quartile of the rankings. China leads the first quartile, followed by Canada, Finland, the United States and the Czech Republic. Lithuania, France, the Netherlands, Japan, Spain, Poland and the United Kingdom are among the countries in the second quartile.

India, like Peru, Philippines, Sri Lanka, Indonesia, Mexico, Vietnam, Bulgaria, Thailand, Tunisia, and Venezuela, is in the fourth quartile when it comes to the bounce back rating, which considers a country's ability to restart its manufacturing sector.

Image Source

India has been ranked as the world's second-most-desired manufacturing hub after China. The country surpassed the US to secure the second spot. India could benefit from relocations from China to other parts of Asia because it already has a strong base in engineering, pharmaceuticals, and chemicals, all of which are still at the centre of trade tensions between the US and China according to Cushman and Wakefield 2021 Global Manufacturing Risk Index. According to the report, reforms in land and labour laws are essential to India's success as a global manufacturing hub. The baseline scenario prioritises a country's operating conditions as well as its cost competitiveness. Automotive manufacturing and Electronic components are led by Jiangsu and Guangdong, while chemicals and natural resources are concentrated in Liaoning and Zhejiang. Because of its large consumer market and state and federal incentives, the United States is a desirable hub. Indonesia outspent India and Vietnam in terms of cost, while China maintained its lead. Indonesia has risen to second place from fifth while India has dropped to third place. Falling rents in Jakarta have aided the country's cost-effectiveness, which has pushed it up to three places. While Vietnam's wages are lower than China's, the country is increasingly competing with lower-cost countries. In the meantime, Thailand's cost profile has pushed it up to fifth place from eighth. Colombia rose from 15th to eighth place, with labour costs compared to those in Asia. On the other hand, India is nowhere near the top of the risk scenario that considers lower levels of political and economic risks. India is assembled with Colombia, Italy, Belgium, Malaysia, Romania, Indonesia, Bulgaria, Thailand, Hungary, Peru and Vietnam in the third quartile of the rankings. China leads the first quartile, followed by Canada, Finland, the United States and the Czech Republic. Lithuania, France, the Netherlands, Japan, Spain, Poland and the United Kingdom are among the countries in the second quartile. India, like Peru, Philippines, Sri Lanka, Indonesia, Mexico, Vietnam, Bulgaria, Thailand, Tunisia, and Venezuela, is in the fourth quartile when it comes to the bounce back rating, which considers a country's ability to restart its manufacturing sector. Image Source

Infrastructure Transport

15 Sep 2025

Cabinet Approves Key Highway and Rail Projects in Bihar Region

The Union Cabinet on Wednesday approved the four-laning of the 84.2-km Mokama-Munger section of the Buxar-Bhagalpur high-speed corridor, a key industrial region in poll-bound Bihar. The Cabinet also sanctioned the doubling of the 177-km Bhagalpur-Dumka-Rampurhat railway line, which passes through Bihar, Jharkhand, and West Bengal, at a cost of Rs 31.7 billion.The Rs 44.5 billion highway project will be constructed under the hybrid annuity model, a variant of public-private partnership. The Mokama-Munger stretch was the only remaining two-lane section of the 363-km Buxar-Bhagalpur corridor. Fou..

Infrastructure Transport

15 Sep 2025

NGT Issues Notice on Bengaluru Twin Tunnel Project

The National Green Tribunal (NGT) on Wednesday issued notices in response to a petition filed by Bengaluru Praja Vedike and others, challenging the Bengaluru twin tunnel road project. Petitioners claim the project was “hastily announced” and bypassed mandatory environmental impact assessment procedures.Notices have been served to the Karnataka Government, Greater Bengaluru Authority, State Environment Impact Assessment Authority (SEIAA), Bengaluru Smart Infrastructure Ltd (B-SMILE), the Union Ministry of Environment, Forest and Climate Change, and project consultants.The 16.74-km twin-tube..

Real Estate

15 Sep 2025

India’s Residential Sales to Dip Slightly in FY26

Residential sales in India’s seven major cities are projected to decline by up to 3 per cent year-on-year in FY26 to 620–640 million square feet (msf), amid a moderation in sales velocity, according to ratings agency Icra.In FY25, sales stood at 643 msf, down 8 per cent YoY, following a sharp contraction in new launches and moderated demand in the affordable and mid-income segments. This slowdown came after the sector posted a robust compound annual growth rate of 26 per cent in area sales between FY22 and FY24.Icra noted: “Having seen a strong upcycle, the sector entered an equilibrium ..