Global Manufacturing Index Current Affairs
The World Economic Forum (WEF) has ranked India at 30th position among 100 countries on its Global Manufacturing Index (GMI).
The index was released as part of WEF’s first Readiness for the future of production Report which analysed development of modern industrial strategies and urges collaborative action.
Readiness for future of production Report
The report was developed by WEF in collaboration with A.T. Kearney. It analyses and measures how well positioned 100 countries will shape and benefit from changing nature of production through adoption of emerging technology as part of Fourth Industrial Revolution in production. It calls for new and innovative approaches to public-private collaboration are needed to accelerate transformation.
It has categorised 100 countries into four groups viz. Leading (strong current base, high level of readiness for future), High Potential (limited current base, high potential for future), Legacy (strong current base, at risk for future) or Nascent (limited current base, low level of readiness for future).
Key Highlights of Report
Top 10 countries in GMI: Japan, South Korea, Germany, Switzerland, China, Czech Republic, United States, Sweden, Austria and Ireland.
BRICS nations: China (25th), Russia (35th), Brazil (41st) and South Africa (45th). China was placed among ‘leading countries’. Indian and Russia were placed in ‘Legacy’ group while Brazil and South Africa are in ‘nascent’ ones.
The 25 ‘leading’ countries were placed in best position group to gain as production systems stand on brink of exponential change. No country was placed in frontier of readiness group.
About India: It is 5th-largest manufacturer in world with total manufacturing value added of over US $420 billion in 2016. Its manufacturing sector has grown by over 7% per year on average in past three decades and accounts for 16-20% of India’s GDP. Demand for Indian manufactured products is rising.
India was ranked 9th in terms of scale of production and at 48th place for complexity. It was ranked 3rd for market size. It was ranked poorly (90th or even lower) in parameters like female participation in labour force, trade tariffs, regulatory efficiency and sustainable resources.
Overall, India ranked better than its neighbours Sri Lanka (66th), Pakistan (74th) and Bangladesh (80th). Other countries that ranked below India include Turkey, Indonesia, Canada, Australia, New Zealand, Mauritius and UAE.
World Economic Forum
WEF is independent international organization committed to improving state of world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas. It was incorporated as a not-for-profit foundation in 1971. It is headquartered in Geneva, Switzerland.