India maintains its position as the most competitive country for business and manufacturing in South Asia in 2017 as well in the latest released rankings by World Economic Forum (WEF). Although, India has slipped down the rankings by two spots from last year, the two rankings are not comparable since the changed methodology for assigning ranks by the World Economic Forum. The rankings have come amidst the country’s efforts to gain 40 spots and reach 90th position in the World Bank’s annual survey for ease of doing business. According to the reports, India has achieved its highest ever score in terms of competitiveness in this year’s rankings and have shown continued signs of improvement with the other developing nations in the region, mainly China and Indonesia despite of countries like Brazil and Turkey losing their control and position in the world economy in the past few years.
The gain is credit to the new policies that has been introduced by the Government of India for the betterment of infrastructure in manufacturing and industrial sectors. If the reports are to be believed, India rose a couple of positions in infrastructural development in industrial sector which has consequently resulted in improved rankings of the country.
The rankings can be viewed as how India has evolved in the manufacturing industry over the years. At the grass root level, this is the result of rehabilitated and enriched Operational excellence and improved labor market efficiency. Moreover, India’s efforts to bring in foreign investments in the Indian manufacturing industry will see a bright light with such reports and rankings. The Indian manufacturing industry has been on the crest in the recent times. Although, it was slightly affected by the rollout of decisions like demonetization and GST but the train has returned to its tracks lately in the last quarter of the fiscal year 2017.
There are obviously some risks in the Indian market like other markets and the same is instigated by the World Economic Forum’s report when the quote . However, it must not be ruled out of sight that India have still sustained its position and has rather improved it despite the global financial crisis. The manufacturing sector of the country has already added to the country’s GDP significantly, but its contribution towards the growth and recovery in the economic strata in defiance of the failures of the policy and reform makers to support the Indian economy is remarkable.
The manufacturing sector has currently stabilized itself with the leap it made in the last couple of months as analyzed by Nikkei Manufacturing Index. The gain is bound to make its impact in the first quarter of the year 2018 and the market might start growing under green lights.
World Economic Forum’s comment on India’s position!
“India has made significant progress on infrastructure, one of the pillars where it ranked worst”, said WFE in a statement. The report further mentioned, “India (40th) stabilizes this year after its big leap forward of the previous two years. The score improves across most pillars of competitiveness, particularly infrastructure (66th, up by two), higher education and training (75th, up by six), and technological readiness (107th, up by three), reflecting recent public investments in these areas.”
The WEF’s stand is surely going to influence the Indian manufacturing market scenario and will sublime the Indian industry. As a developing country, the nation’s market will look forward to achieving the untouched in the next few years and with the constant efforts of the Indian government with subtle motives is going to revolutionize how the world sees the Indian economy.
Written & Compiled by Faber Kishlay Krishna & Faber Mayuri Pandya