WEF ranks India 30th on global manufacturing index, Japan tops
Home Â» Industry WEF ranks India 30th on global manufacturing index, Japan topsThe World Economic Forum (WEF) has ranked India at 30th position on a global manufacturing indexâ"much ahead of its BRICS peers, Brazil, Russia and South Africa, except China which has been placed at 5th spotLast Published: Sun, Jan 14 2018. 02 38 PM ISTPTIWEF said Indiaâs manufacturing sector has grown by over 7% annually on average in the past 3 decades and accounts for 16-20% of its GDP. Photo: Bloomberg
New Delhi/Geneva: The World Economic Forum (WEF) has ranked India at 30th position on a global manufacturing indexâ"below Chinaâs 5th place but above other BRICS peers, Brazil, Russia and South Africa.
Japan has been found to have the best structure of production in the Geneva-based WEFâs first âReadiness for the future of production reportâ and is followed by South Korea, Germany, Switzerland, China, Czech Republic, the US, Sweden, Austria and Ireland in the top 10.
Among BRICS nations, Russia is ranked 35th, Brazil 41st and South Africa at 45th place. The report, which analyses development of modern industrial strategies and urges collaborative action, has categorised 100 countries into four groups -- Leading (strong current base, high level of readiness for future); High Potential (limited current base, high potential for future); Legacy (strong current base, at risk for future); or Nascent (limited curren t base, low level of readiness for future).
India has been placed in the âLegacyâ group along with Hungary, Mexico, Philippines, Russia, Thailand and Turkey, among others. China figures among âleading countriesâ, while Brazil and South Africa are in ânascentâ ones.
The 25 âleadingâ countries are in the best position to gain as production systems stand on the brink of exponential change, the WEF said in the report published ahead of its annual meeting in Davos, Switzerland later this month.
At the same time, no country has reached the frontier of readiness, let alone harnessed the full potential of the Fourth Industrial Revolution in production. About India, the 5th-largest manufacturer in the world with a total manufacturing value added of over $420 billion in 2016, the WEF said the countryâs manufacturing sector has grown by over 7% per year on average in the past three decades and accounts for 16-20% of Indiaâs GDP.
âHome to the se cond-largest population in the world and one of the fastest growing economies, the demand for Indian manufactured products is rising.
âIndia has room for improvement across the drivers of production, except for demand environment where it ranks in the top 5,â the WEF said.
It listed human capital and sustainable resources as the two key challenges for India and said the country needs to continue to raise the capabilities of its relatively young and fast-growing labour force. This entails upgrading education curricula, revamping vocational training programmes and improving digital skills, the WEF said, while adding that India should continue to diversify its energy sources and reduce emissions as its manufacturing sector continues to expand.
It also took note of the governmentâs âMake in Indiaâ initiative to make the country a global manufacturing hub and of âa significant pushâ to improve key enablers and move towards a more connected economy with announcement of a $59 billion investment in infrastructure in 2017.
In terms of scale of production, India has been ranked 9th, while for complexity it is at 48th place. For market size, India is ranked 3rd, while areas where the country is ranked poorly (90th or even lower) include female participation in labour force, trade tariffs, regulatory efficiency and sustainable resources.
Overall, India is ranked better than its neighbours Sri Lanka (66th), Pakistan (74th) and Bangladesh (80th). Other countries ranked below India include Turkey, Canada, Indonesia, New Zealand, Australia, Hong Kong, Mauritius and the UAE. The countries ranked better than India include Singapore, Thailand, the UK, Italy, France, Malaysia, Mexico, Romania, Israel, the Netherlands, Denmark, the Philippines and Spain.
In a separate list of the countries best positioned to capitalise on the fourth industrial revolution to transform production systems, the US has been ranked on the top, foll owed by Singapore, Switzerland, the UK and the Netherlands in the top five. India has been ranked 44th on this list, while China is at 25th place and Russia at 43rd. However, India is ranked better than Brazil (47th) and South Africa (49th).
The report has been developed in collaboration with A T Kearney and calls for new and innovative approaches to public-private collaboration are needed to accelerate transformation.
âEvery country faces challenges that cannot be solved by the private sector or public sector alone. New approaches to public-private collaboration that complement traditional models are needed to help governments quickly and effectively form partnerships that unlock new value,â it added.First Published: Sun, Jan 14 2018. 02 35 PM IST
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