The World Economic Forum (WEF), in its 'Readiness for the future of production report', has ranked India at 30th position on a global manufacturing index above BRICS peers, Brazil (41st), Russia (35th) and South Africa (45th); except China, which has found the 5th place.
According to this report, Japan has the best structure of production and is followed by South Korea, Germany, Switzerland, China, Czech Republic, the US, Sweden, Austria and Ireland in the top 10.
Key Highlights of the report
The Readiness for the future of production report has categorised 100 countries into four groups –
1.Leading (strong current base, high level of readiness for future);
2.High Potential (limited current base, high potential for future);
3.Legacy (strong current base, at risk for future);
4.Or Nascent (limited current base, low level of readiness for future).
India has been placed in the 'Legacy' group along with Hungary, Mexico, Thailand, Philippines, Russia and Turkey, among others; while Brazil and South Africa are categorized in 'nascent' ones.
China figures among 'leading countries'; the 25 'leading' countries are in the best position to gain as production systems stand on the brink of exponential change.
However, no country has reached the frontier of readiness, and hence lacking behind to harness the full potential of the Fourth Industrial Revolution in production.
India as a 5th-largest manufacturer in the world with a total manufacturing value added of over USD 420 billion in 2016, country's manufacturing sector has grown by over 7% per year on average in the past three decades and accounts for 16-20% of India's GDP.
As per the report, India is home to the 2nd largest population in the world and one of the fastest growing economies; hence, the demand for Indian manufactured products is rising.
In terms of the scale of production, India has been ranked 9th, while for complexity it is at 48th place; in market size, India is ranked 3rd.
India is ranked poorly (90th or even lower) in the index of female participation in labour force, trade tariffs, regulatory efficiency and sustainable resources.
Overall, India is ranked better than its neighbours Sri Lanka (66th), Pakistan (74th) and Bangladesh (80th). Other countries ranked below India include Turkey, Australia, Hong Kong, Canada, Indonesia, New Zealand, Mauritius and the UAE.
The countries ranked better than India include Singapore, Thailand, the UK, Italy, France, Israel, the Netherlands, Denmark, Malaysia, Mexico, Romania, the Philippines and Spain.
As per WEF report, human capital and sustainable resources are the two key challenges for India and it needs to continue to raise the capabilities of its relatively young and fast-growing labour force. This needs upgrading education curricula, revamping vocational training programmes and improving digital skills.
The report also said that India should carry on the diversification of its energy sources and reduce emissions as its manufacturing sector continues to expand.
It also took note of the government's 'Make in India' initiative to make the country a global manufacturing hub and of "a significant push" to improve key enablers and move towards a more connected economy with the announcement of a USD 59 billion investment in infrastructure in 2017.
List of countries best positioned to capitalise on Fourth Industrial Revolution
India has been ranked at 44th position, while China is at 25th place and Russia at 43rd. However, India is ranked better than Brazil (47th) and South Africa (49th).
The Readiness for the future of production report, developed in collaboration with A.T. Kearney, analyses and presents the results of the first edition of the Readiness for the Future of Production Assessment, which measures how well positioned 100 countries and economies across all geographies and stages of development are to shape and benefit from the changing nature of production through the adoption of emerging technology.
It serves as a new benchmarking and diagnostic tool to catalyse multi-stakeholder dialogue, shape joint actions and inform the development of modern industrial strategies.