July 13, 2024
Economy

India Rises To Fourth In 2024 Asia Manufacturing Index

India has secured the fourth spot in the recently released Emerging Asia Manufacturing Index (EAMI) 2024 by Dezan Shira & Associates. This comprehensive report evaluates the manufacturing capabilities of eight key Asian economies: China, India, Indonesia, Malaysia, Philippines, Thailand, Vietnam and Bangladesh. The index provides critical insights into the factors shaping the industrial landscape, focusing on economic stability, workforce quality, innovation, infrastructure, political risk, business environment, international trade and tax policy.

India’s strong economic prospects and high-quality workforce are major highlights of the report. The country benefits from a large, youthful population, positioning it favourably against competitors despite challenges related to skill gaps and labour market rigidity. However, India faces significant hurdles in political risk, international trade and tax policy. The report notes that India’s limited openness and complex regulatory environment hinder foreign investment and international trade, making reforms in these areas crucial for enhancing its attractiveness as a manufacturing hub.

In the comparative analysis, India ranks behind China, Vietnam, and Malaysia but ahead of Indonesia, Thailand, Philippines, and Bangladesh. China dominates the index with robust infrastructure, innovation capacity and economic resilience. Vietnam excels in international trade and openness, making it an attractive destination for manufacturing investments, while Malaysia maintains a strong position due to a well-rounded performance across all criteria despite challenges in economic volatility and manufacturing growth.

The EAMI 2024 highlights India’s potential as a major manufacturing hub in Asia. Addressing political risk, improving international trade openness and simplifying tax policies are essential steps for driving growth. India’s textile industry, a cornerstone of its manufacturing sector, must focus on innovation, sustainability and market diversification to capitalize on emerging opportunities.

This analysis is based on the findings from the “Emerging Asia Manufacturing Index 2024” by Dezan Shira & Associates. For a detailed examination and complete rankings, refer to the full report.

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