Global manufacturing competitiveness index
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India is expected to rise from No. 11 (67/100) to No 5 (77.5/100) by 2020 in competitiveness rankings by virtue low-cost labour, agile manufacturing capabilities, favourable demographic profiles, market and economic growth. Malaysia, Thailand, Indonesia, and Vietnam will also show relative strength.

Dropping from No 2 spot in 2010, to settle at 11th is a shocking demotion... a reason for this accelerated decline over the past three years is perhaps partly due to the stalling of the country’s economic growth and delayed policy actions around infrastructure investments in the face of continued national political uncertainty. However, manufacturing CEOs appear to acknowledge the change in political direction brought on by a new Indian government and foresee an improvement in India’s competitiveness ranking as new initiatives, such as “Make in India” and “Skill India,” take hold over the next five years. A further indication that India can execute a turnaround is evidenced by a relatively resilient growth rate in the nation’s overall GDP.

India remains challenged by poor infrastructure and a governance model that is slow to react which may affect the speed with which it can support higher growth. As 43 per cent of its US$174 billion in manufacturing exports requires high-skill and technological intensity, India may have a strong incentive to solve its regulatory and bureaucratic challenges. HERE

Is Rupee's strength to be welcomed?
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A strengthening rupee is a challenge to Make in India and exports. Foreign trade policy has always supported exports by adjusting export incentive but more can be done through addressing trade and infrastructure bottlenecks. Govt efforts have been to promote efficiency, availability and cost reductions in logistics, capital, manpower and core inputs like power, water, steel, coal, agricultural products, minerals, oil and gas. Some examples of actions taken include digital working, universal banking, formalisation and curtailing of corruption at the top; easing of rules of doing business; increased spending on roads and railways and improvement in port operations; jobs related training.

India is also poised to make big gains in many competitive indices like Ease of doing business, logistics performance index and global competitiveness index. But as the graphic below illustrates, there is a long way to go, and much depends on the success of grand plans like Sagarmala, Bharatmala, Digital India, Skilling and expansion of higher education.