The Manufacturing Sector: Growth Story of India

5 .

COMPARISON OF INDIA’S MANUFACTURING SECTOR ECOSYSTEM

India’s manufacturing sector compared to alternative destinations in APAC

INDICATOR

INDIA

CHINA

VIETNAM

MALAYSIA

INDONESIA

THAILAND

SINGAPORE

PHILIPPINES

63

Ease of Doing Business (2020) Rank 17

31

70

12

73

21

2

95

38

Logistics Performance Index Rank (2023) 18

19

43

26

61

34

1

43

16

FTA: Signed & In effect (Number) - Nov 2022 19

21

15

18

16

15

27

10

435

Export Volume (2022) USD Bn 20

3,593

371

352

291

287

515

74

2.33%

% Share in Global Trade 2022 21

12.49%

1.45%

1.28%

1.05%

1.17%

1.96%

0.44%

8.63

Workforce employed in manufacturing (Million, 2020) 22

27.28

1.38

0.38

2.55

0.77

0.03

0.55

In terms of the export volume, the export-driven economy of China is clearly dominant with a USD 3,363 billion, almost 10x value of its peers in South Asia. Singapore and India take the second lead with USD 457 billion and 395 billion (INR 32,496 Bn), respectively. In terms of Ease of Doing Business and Logistics Performance Index, Singapore takes the lead with its strong governance, conducive business environment and strong connectivity infrastructure. India scores relatively low, behind countries like Malaysia, Thailand, and China. In terms of active Free Trade Agreements (FTA), Singapore and China have maximum number of FTAs and other South Asian countries have similar number of agreements in place.

India’s strength lies in its large availability of skilled workforce, a significant improvement demonstrated in the Ease of Doing Business rank as well as Logistics Performance indices, and a reasonably healthy number of free trade agreements (FTAs).

17 Ease of Doing Business Report World Bank (2020) | 19 Free Trade Agreements Database (adb.org) | 20 World Trade Organization Database on Merchandize Trade (Export Volume) | 21 World Trade Organization Database- Exports and Imports share- Merchandize | 22 International Labor Organization - Manufacturing sector employment data 18 World Bank Database for Logistics Performance Index Rank |

18

Cushman & Wakefield

The Manufacturing Sector Growth Story of India

19