India overtakes US, ranks 2nd in most striking manufacturing hubs list

The US is at the third position, followed by Canada, Czech Republic, Indonesia, Lithuania, Thailand, Malaysia and Poland, Cushman and Wakefield said in a statement.

Last year, the United States was at the second position while India ranked third.

The consultant said that this indicates the growing interest shown by manufacturers in India as a preferred manufacturing hub over other countries.

"The growing 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," the statement said.

The rankings in the report are determined based on four key parameters: the country's capability to restart manufacturing, business environment (availability of talent/labour, access to markets), operating costs, and the risks (political, economic and environmental).

The baseline ranking for top manufacturing destinations is determined on the basis of a country''s operating conditions and cost effectiveness.

"This switch in ranking is attributed to the plant relocations from China to other parts of Asia due to an already established base in pharma, chemicals and engineering sectors, that continue to be at the centre of the US-China trade tensions," the company added.

Fibre2Fashion News Desk (DS)