India second in global manufacturing competitiveness index

Feb 11, 2011 12:00 AM

The rise of India as a serious player in global manufacturing is gathering pace as Deloitte’s Global Manufacturing Competitiveness Index, compiled in conjunction with the US Council on Competitiveness, ranks the country second only to China. The Index is based on the responses of more than 400 chief executive officers and senior manufacturing executives worldwide to a survey conducted in late 2009 and early 2010. The Index also draws on select interviews with key manufacturing decision makers. The report indicates that access to talented workers capable of supporting innovation is the key factor driving global competitiveness at manufacturing companies — well ahead of “classic” factors typically associated with competitive manufacturing, such as labour, materials, and energy.

The report identified the emergence of a new group of leaders in the manufacturing competitive index over the next 5 years. These include Mexico, Poland, and Thailand — countries not always considered alongside longer-standing, up-and-comers like Brazil and Russia. Not unexpectedly, Asian giants like China, India, and the Republic of Korea are projected to dominate the index in 5 years, as they do now. Further, dominant manufacturing super powers of the late 20th Century — the US, Japan, and Germany — are expected to become less competitive over the next 5 years. The Index also identified a clear geographical divergence in the perception of public policy support for competitiveness. Most respondents from China think that their government makes competitiveness easy compared to respondents in Europe and the US, with 70 % of them citing government support of science, technology, and innovation as advantageous.

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