'India on track to become 2nd largest manufacturing country'

[LETHALFORCE]

Business Line : Industry & Economy News : 'India to be 2nd largest manufacturing country'

India is expected to be the second largest economy in manufacturing in next five years, followed by Brazil as the third ranked country, consulting major Deloitte Touche Tohmatsu (Deloitte) has said. China will retain the numero uno position. "The competitiveness of each nation's manufacturing innovation ecosystem will continue to be a focus area for policymakers, business leaders and much of society," the 2013 Global Manufacturing Competitiveness Index report done by Deloitte said. It said the main reason will be the recent restrained growth in China, changes in the US, a dark cloud over much of the Euro Zone, trade wars in South America, an ongoing malaise in Japan and the percolating but elusive rise of India. "Brazil's jump from eighth to third is the largest jump expected over the next five years. And, Vietnam moves into the top 10 as the tenth most competitive nation," it said. According to the Deloitte's report, five developed economy nations that were ranked in the top 10 as of this year were Germany (second), the US (third), South Korea (fifth), Canada (seventh) and Japan (tenth). Five emerging economy nations were also ranked in the top 10 including China (first), India (fourth), Taiwan (sixth), Brazil (eighth) and Singapore (ninth). The report included over 550 survey responses from Chief Executive Officers around the world collected throughout 2012

 

[roma]

this is more like it --- we are gonna get there one step at a time ..... draggonnn is gooona get some action !!

 

[Known_Unknown]

I am pleasantly surprised. I thought India was faaar behind the major manufacturing superpowers like China, US, Germany etc. Need more details. How are they doing the ranking? Based on volume or value of manufactured goods?

EDIT: Hold on, it seems the ranking does not measure the actual size of the "manufacturing economy", it's only a competitiveness ranking.

http://www.deloitte.com/view/en_GX/.../3e4898b27c50b310VgnVCM3000003456f70aRCRD.htm

Over the next five years, 20th-century manufacturing stalwarts like the United States, Germany and Japan will be challenged to maintain their competitive edge to emerging nations such as China, India and Brazil, according to the 2013 Global Manufacturing Competitiveness Index report from Deloitte Touche Tohmatsu Limited's (DTTL) Global Manufacturing Industry group and the U.S. Council on Competitiveness.

The report confirms that the landscape for competitive manufacturing is in the midst of a massive power shift – based on an in-depth analysis of survey responses from more than 550 chief executive officers (CEOs) and senior leaders at manufacturing companies around the world.

The 2013 Global Manufacturing Competitiveness Index once again ranks China as the most competitive manufacturing nation in the world both today, and five years from now. Germany and the United States round out the top three competitive manufacturing nations, but, according to the survey, both fall five years from now, with Germany ranking fourth and the United States ranking fifth, only slightly ahead of the Republic of Korea. The two other developed nations currently in the top 10 are also expected to be less competitive in five years: Canada slides from seventh to eighth place and Japan drops out of the top 10 entirely, falling to 12th place.

 

[Rage]

At least, as per an IHS report I was able to access through my company library, India was ranked 5th in 2011 among the world's largest manufacturing sectors ranked by $value of output and had the second highest percentage growth in that sector among major economies, in both nominal and real terms; with China also overtaking the U.S. in that year.

I'm not able to access that 2011 report now because of its recentness (and hence exclusive access- IHS charges for access, being an economics consultancy) but I believe this 2005 report on global manufacturing by the same company placed India at 6th position.

India's manufacturing competitiveness has significantly improved by all accounts, and hopefully that translates into lending it a leading long-term manufacturing designation. But that will only happen once significant bottlenecks are removed, like infrastructure and power. For that, you need politics to be more mundane. And less, how should we put it, cacophonous.

 

[Energon]

I would have to see the details and the fine print here. If one is to take into account the contribution of small scale cottage industry, then yes, India will be high on the list due to its sheer size. However if one is to hold modern manufacturing of a wide array products ranging in complexity as the gold standard, then India won't be able to match up with the other heavyweights like China, S. Korea and Germany unless there is serious labor and land reform.

 

[nrj]

Race is no longer about being The Best economy in manufacturing but about moving up in value chain. Chinese are very well on that track. They are competing today for the race of tomorrow. Are we ?

 

[no smoking]

this is more like it --- we are gonna get there one step at a time ..... draggonnn is gooona get some action !!

This kind of reports have no value more than a toilet paper. It deliberatly misleads public conception of manufacturing ability.

Dragon is always getting some action, but for USA instead of india. Considering technology level and system efficiency, INNOVATION, China is still far behind USA while India is not in the screen yet.

 

[thakur_ritesh]

Race is no longer about being The Best economy in manufacturing but about moving up in value chain. Chinese are very well on that track. They are competing today for the race of tomorrow. Are we ?

For an economy like ours, it gets extremely important that for now we do give a push to all sorts of manufacturing, going up the value chain is still a long way to go for us. We, for now, don't even have a good enough policy frame work for a decent low-mid level manufacturing in this country, forget going up the value chain of any sort.

I was looking at the figures provided by Rage, and the way it came out, we are nearly a tenth of what the PRC is doing in manufacturing. Not only are they going up the value chain, they are further consolidating at the low-mid level manufacturing, and don't want anyone else to fill in the void. We on the other hand are too psyched up with all sort of absolute necessary reforms, and FDI in this country still gets seen as the return of the east India company.

Imagine, China which is 10 times in value of manufacturing to what we do, and they are still clocking 14%, and with an extremely low base, we are happy with a lowly 7% growth rate.

Anyway, on that figure provided by Rage, those can be best judged if those get worked around at per-capita level, and we don't really figure on that account.

 

[winton]

I think this report is plausible, since china is moving up the value chain, and becoming more service oriented and innovative oriented, they will seek to move their cheap factories to lower wage nations such as india or vietnam. Wages are getting too expensive in china.