India: WEF ranks India 30th on global manufacturing index above BRICS peers; Japan tops

• The World Economic Forum (WEF) has ranked India at 30th position on a global manufacturing index – below China’s 5th place but above other BRICS peers, Brazil, Russia and South Africa. Japan has been found to have the best structure of production in the Geneva-based WEF’s first ‘Readiness for the future of production report’ and is followed by South Korea, Germany, Switzerland, China, Czech Republic, the US, Sweden, Austria and Ireland in the top 10.
• The report, which analyses development of modern industrial strategies and urges collaborative action, has categorised 100 countries into four groups – Leading (strong current base, high level of readiness for future); High Potential (limited current base, high potential for future); Legacy (strong current base, at risk for future); or Nascent (limited current base, low level of readiness for future). India has been placed in the ‘Legacy’ group along with Hungary, Mexico, Philippines, Russia, Thailand and Turkey, among others.
• The 25 ‘leading’ countries are in the best position to gain as production systems stand on the brink of exponential change.
• At the same time, no country has reached the frontier of readiness, let alone harnessed the full potential of the Fourth Industrial Revolution in production. About India, the 5th-largest manufacturer in the world with a total manufacturing value added of over USD420bn in 2016, the WEF said the country’s manufacturing sector has grown by over 7% per year on average in the past three decades and accounts for 16-20% of India’s GDP.
• This entails upgrading education curricula, revamping vocational training programmes and improving digital skills, the WEF said, while adding that India should continue to diversify its energy sources and reduce emissions as its manufacturing sector continues to expand.
• It also took note of the government’s ‘Make in India’ initiative to make the country a global manufacturing hub and of “a significant push” to improve key enablers and move towards a more connected economy with announcement of a USD59bn investment in infrastructure in 2017. In terms of scale of production, India has been ranked 9th, while for complexity it is at 48th place. For market size, India is ranked 3rd, while areas where the country is ranked poorly (90th or even lower) include female participation in labour force, trade tariffs, regulatory efficiency and sustainable resources. Overall, India is ranked better than its neighbours Sri Lanka (66th), Pakistan (74th) and Bangladesh (80th).

External Link : http://www.financialexpress.com/economy/wef-ranks-india-30th-on-global-manufacturing-index-above-brics-peers-japan-tops/1014330/