India emerges as Second in Global Manufacturing Risk Index
- India has emerged as the 2nd most sought after manufacturing destination across the world.
- This indicates the growing interest shown by manufacturers in India as a preferred manufacturing hub over other countries, including the U.S and those in the Asia-Pacific region.
- The report was released by Cushman & Wakefield.
About global Manufacturing Risk Index:
- Cushman & Wakefield plc is a global commercial real estate services firm.
- It is one of the ""Big Three"" commercial real estate services companies, alongside CBRE and JLL.
- Based on the most favorable locations for international manufacturing, Cushman & Wakefield’s Manufacturing Risk Index report ranks countries based on a range of factors including:
- Risk and cost factors
- Political and economic risk
- Market conditions and labor costs
- Market Access
- The index ranks 47 countries across Europe, the Americas, and the Asia Pacific.
Findings of Report
- The rising focus on India can be attributed to India’s operating conditions and cost competitiveness.
- Also, the country’s proven success in meeting outsourcing requirements has led to the increase in the ranking year on year.
- India and the US switched places this year, second and third, taking India one rank above from the rankings released last year, when India stood at the third place.
Steps taken by government to boost manufacturing
- Earlier this year, the government introduced various financial incentives for companies to produce IT hardware.
- Accounting measures: India has reduced corporate tax from 30% to 25%.
- ‘Make in India’ and ‘Skill India’ that have achieved a feat in creating job opportunities in the manufacturing sector.
- Further, these initiatives have also enhanced skill development to create a large pool of skilled human resources.
- Rules regarding land acquisition have been subsequently relaxed over the years.
- Income tax, GST, and other custom reliefs provided for favorable business conditions.