World Economic Forum took note of Prime Minister Narendra Modi’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 $59 billion investment in infrastructure in 2017.
India has been ranked at 30th position on a global manufacturing index by the World Economic Forum (WEF). It stands ahead of its BRICS peers – Brazil, Russia, and South Africa, but below China’s 5th place. About India, the 5th-largest manufacturer in the world with a total manufacturing value added of over $420 billion in 2016, the WEF said the country’s manufacturing sector has grown by over 7 percent per year on average in the past three decades and accounts for 16-20 percent of India’s GDP. It also took note of Prime Minister Narendra Modi’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 $59 billion investment in infrastructure in 2017. However, WEF listed key challenges that Modi-government faces and need to be addressed as soon as possible.
1) It listed human capital and sustainable resources as the two key challenges for India and said the country needs to continue to raise the capabilities of its relatively young and fast-growing labor force.
2)This entails upgrading education curricula, revamping vocational training programmes and improving digital skills.
3) India should continue to diversify its energy sources and reduce emissions as its manufacturing sector continues to expand.
The report, which analyses development of modern industrial strategies and urges collaborative action, has categorised 100 countries into four groups – 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). India has been placed in the ‘Legacy’ group along with Hungary, Mexico, Philippines, Russia, Thailand, and Turkey, among others. China figures among ‘leading countries’, while Brazil and South Africa are in ‘nascent’ ones. Japan has been found to have the best structure of production in the Geneva-based WEF’s first ‘Readiness for the future of production report’ and is followed by South Korea, Germany, Switzerland, China, Czech Republic, the US, Sweden, Austria and Ireland in the top 10. Among BRICS nations, Russia is ranked 35th, Brazil 41st, and South Africa at 45th place.