India ranked 30th on WEF global manufacturing index; Japan tops
The World Economic Forum (WEF) ranked India 30th in its global manufacturing index, 25 places behind China, but ahead of BRICS nations Brazil, Russia, and South Africa. Meanwhile, Japan topped the index, followed by South Korea, Germany, Switzerland, China, Czech Republic, the US, Sweden, Austria, and Ireland, which makes up the top 10 countries. Here's more.
Collaborative action is the key to future economic challenges
"Every country faces challenges that cannot be solved by the private sector or public sector alone. New approaches to public-private collaboration that complement traditional models are needed to help governments quickly and effectively form partnerships that unlock new value," said the WEF.
How the WEF categorized different countries
WEF's first "Readiness for the future of production report", which analyzes modern industrial strategies and urges collaborative action, categorized 100 countries into four groups. Countries were classified as Leading (strong current base, high readiness for the future), High Potential (limited current base, high future potential), Legacy (strong current base, at risk for the future), and Nascent (limited current base, low readiness for the future).
Who stands to benefit the most from Industrial Revolution 4.0?
In a separate list of countries best positioned to benefit from the fourth Industrial Revolution, the WEF ranked US, Singapore, Switzerland, the UK, and the Netherlands in the top five. India was ranked 44th in this list, and China, 25th.
India ahead of some BRICS nations, but much behind China
The WEF placed India in the 'Legacy' group along with Russia, Thailand, Hungary, Mexico, Turkey, and the Philippines. China, which ranked 5th, was placed in the 'Leading' group while BRICS nations Brazil and South Africa, ranked 41st and 45th respectively, were placed in the 'Nascent' group. The 25 leading nations stand in the best position to gain from the exponential change facing production systems.
India still held back by poor performance in several areas
India was ranked 3rd by the WEF in terms of market size, 9th in terms of scale of production, and 44th in terms of complexity of production. India, however, fared poorly (90th rank or lower) in other areas like female workforce participation, regulatory efficiency, etc.
What the WEF had to say about India
The WEF listed sustainable resources and human capital as key challenges for India, and stressed on the importance of improving the capabilities of India's relatively young and fast-growing workforce. India must also diversify its energy sources and reduce emissions as the manufacturing sector expands, added the WEF. The WEF also acknowledged 'Make in India' as a "significant push" towards a larger and connected economy.
