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India becomes world’s second most attractive manufacturing hub


India has emerged as the second most sought-after manufacturing destination globally after toppling the United States and China, the 2021 Global Manufacturing Risk Index by Cushman and Wakefield shows. This feat underscores India’s robust economic expansion and improving competitiveness.

The ‘Make in India’ initiative offering incentives to domestic firms and multinationals has notably increased foreign investment inflows and positioned India as a manufacturing powerhouse. Government schemes have also produced a conducing business climate.

Buoyed by over 7% annual GDP growth rates, India’s manufacturing sector now accounts for nearly 14% of economic output. The sustained expansion is reflected in the 56.3 Purchasing Managers’ Index reading for November.

As per the Risk Index report, India leveraged its strong pharmaceutical, chemical and engineering capabilities amid US-China trade tensions to climb up the manufacturing destination ranking. However, further reforms in land and labor laws are required to address residual challenges.

Industry experts opine that India ticked numerous boxes like market access, low-cost skilled manpower, diversified sectors and policy support to achieve this milestone. With its giant domestic consumer base long-term growth prospects, they believe India can consolidate its status as a formidable global manufacturing hub.

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