The Manufacturing Sector: Growth Story of India

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EXCERPTS FROM C&W’S GLOBAL MANUFACTURING REPORT, 2022

India’s manufacturing attractiveness on the rise; conditions have improved a long way

SCENARIO

DESCRIPTION

WEIGHTINGS

BASELINE

The baseline scenario gives equal importance to a country’s operating conditions and cost operating conditions and cost competitiveness

40%

20%

40%

Conditions

Risk

Cost

TOP QUARTILE

SECOND QUARTILE

THIRD QUARTILE

FOURTH QUARTILE

Singapore Morocco Finland Japan United Kingdom Greece Brazil Sweden Tunisia Argentina Australia Italy

China India Indonesia

Portugal Sri Lanka Bulgaria Korea, Republic of Philippines Turkey Canada Peru

Germany France Austria Norway Netherlands Belgium Denmark Ireland Switzerland

Malaysia Thailand Poland Vietnam Czech Republic Colombia United States

Romania Lithuania Spain Mexico

Hungary Slovakia

In its most recent Manufacturing risk index report 2022, Cushman & Wakefield assessed the suitability of 45 different countries for global manufacturers to set-up their base, and India featured in the top-most quartile. The index uses parameters to broadly analyze countries on the three important parameters - business conditions, risk, and costs. As part of the market’s transition to higher-order manufacturing, industrial production in China has remained buoyant owing to newly emerging industries such as “new energy” and “new material” products, including charging piles, wind turbines and photovoltaic cells and the production of “new energy” vehicles which has benefited from positive government support.

This transition, together with ongoing economic expansion of the Asia Pacific region and the commensurate demand for goods, will continue to support China’s manufacturing sector. India, along with few countries in Southeast Asia, score high as they have advantages such as low-cost of labor and property, pro-active government policies, proximity to China (helping facilitate the China+1 diversification), along with other benefits. Particularly for India, it offers a vast and rapidly growing consumer market that few manufacturing companies would ignore.

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Cushman & Wakefield

The Manufacturing Sector Growth Story of India

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