India is likely to emerge as the second most competitive economy in the world after China in terms of manufacturing competitiveness in the next five years, a report has said.
As per the 2013 Global Manufacturing Competitiveness Index compiled by Deloitte Touche Tohmatsu and the US Council on Competitiveness, five years from now, emerging economy nations would surge to occupy the top three spots.
China would retain top spot, with India and Brazil moving up to claim second and third rankings respectively, the report said. Brazil’s jump from eighth to third is the largest jump expected over the next five years.
“India is rated this high mainly because of its huge talent pool, its strong domestic demand and and the incredible geographic position,” Deloitte global leader manufacturing Timothy P Hanley said on the study.
Hanley added that the expertise India has in services can be replicated in manufacturing as well provided challenges like education and infrastructure development are addressed.
Regarding India, the report said, “India’s focused and comprehensive national manufacturing strategy, democratic governance and infrastructure development over the next five years may unlock the potential for CEOs around the world to see this rising star.”
According to the report, talent-driven innovation is deemed the most critical driver of a nation’s competitiveness, while the second most important driver is the economic, trade, financial and tax system of a nation. This study gathers data from more than 550 CEOs and senior manufacturing leaders and rank the 38 countries in terms of their manufacturing competitiveness at present, and in the next five years.