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 the top spot, while, India and Brazil moving up to claim second and third rankings respectively, the report said.
"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 commented on the finding of 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."
The five developed economy nations that were ranked in the top 10 today include -- Germany (ranked second), the US (third), South Korea (fifth), Canada (seventh) and Japan (tenth), while five emerging economy nations were also ranked in the top 10 today: China (first), India (fourth), Taiwan (sixth), Brazil (eighth), and Singapore (ninth).
Meanwhile, in the next five years developed economy nations are likely to slip lower in the executive rankings with Germany moving from second to fourth, the US from third to fifth, South Korea from fifth to sixth, Canada from seventh to eighth and Japan falls out of the top 10 moving from tenth to twelfth.
Brazil's jump from eighth to third is the largest jump expected over the next five years. And Vietnam moves into the top 10 as the tenth most competitive nation.
According to the report talent-driven innovation is deemed the most critical driver of a nation's competitiveness, while, second most important driver position 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.