India at 1, China 2, Vietnam at 3 in this unique list of…; big tension for Beijing due to…
India is rapidly emerging as a global manufacturing hub which is poised to replace China as a manufacturing powerhouse in the future. According to a recent report, India has surpassed China in terms of manufacturing costs, and is now ranked number one on the list of countries with cheapest manufacturing costs.
India becomes cheapest manufacturing hub
As per a report by US News and World Report, India now boasts the lowest manufacturing costs globally, followed by China, Vietnam, Thailand, Phillippines, and Bangladesh. The survey report has evaluated a total of 89 countries based on labor costs which translates into manufacturing costs.
The development is a major setback for India’s arch rival, China, which was long considered the world’s factory, primarily due to low manufacturing costs. This will also cement India’s place as a low-cost global manufacturing destination, and potentially attract more global firms set up their production units in the country or outsource their manufacturing here, which will boost foreign direct investment (FDI).
According to experts, the significant achievement could have far-reaching positive impact on the Indian economy, but stress that continued focus on areas such as infrastructure, skill development and ease of doing business will be important to maintain this momentum and make India a truly global manufacturing superpower .
Top 10 countries with cheapest manufacturing cost
The global list of countries with the cheapest manufacturing costs is topped by India, followed by, China at second place, and Vietnam– which has emerged as a manufacturing hub in recent years– in the third spot.
- India
- China
- Vietnam
- Thailand
- Philippines
- Bangladesh
- Indonesia
- Cambodia
- Malaysia
- Sri Lanka
Notably, India’s nemesis, Pakistan does not feature in this key list as the enemy nation is facing a severe economic crisis due to failing economy, and has virtually no industry to speak of.
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