India Ranks Sixth in Asia Manufacturing Index 2026, Needs Stronger Push

India has been placed sixth in the Asia Manufacturing Index 2026, reflecting steady progress but also exposing gaps in competitiveness. The ranking compares major Asian manufacturing economies across key structural and policy indicators. While India remains an important manufacturing destination, the index suggests that stronger reforms and faster execution are needed to keep pace with leading Asian peers.

Why in News?

India ranked sixth among 11 Asian countries in the Asia Manufacturing Index 2026. The index highlights rising competition in Asia and the need for India to accelerate manufacturing reforms.

What is the Asia Manufacturing Index (AMI)?

• The Asia Manufacturing Index is an annual assessment released by Dezan Shira & Associates, a pan-Asian advisory firm headquartered in Hong Kong.
• The index evaluates manufacturing competitiveness of major Asian economies using a structured framework.
• It ranks countries across eight broad pillars: economy, political risk, business environment, international trade, tax policy, infrastructure, workforce, and innovation.
• These pillars are further broken into 43 sub-parameters, offering a detailed and data-driven comparison of manufacturing readiness and long-term potential across Asia.

India’s Position and Key Takeaways

• India’s sixth position places it in the middle of the Asian manufacturing landscape.
• The ranking shows that while India benefits from a large domestic market, improving infrastructure, and a growing workforce, it still trails leaders on execution speed, policy stability, and innovation depth.
• The index suggests that India must sharpen its manufacturing push to remain competitive as regional peers move faster.
• Continued focus on ease of doing business, logistics efficiency, skill development, and technology adoption will be critical for India to improve its standing in future editions.

How Other Asian Economies Performed

• China retained the top position in the Asia Manufacturing Index 2026, reflecting its scale, infrastructure strength, and integrated supply chains.
• Malaysia emerged as the second-ranked economy for the first time, overtaking Vietnam, which slipped to third. Among developed economies, Singapore climbed to fourth place, surpassing South Korea, which fell to fifth.
• These shifts underline intensifying competition in Asia as countries actively reform policies, upgrade infrastructure, and attract global manufacturing investment.

Key Summary at a Glance

Question

Q. India’s rank in the Asia Manufacturing Index 2026 is:

A. 4th
B. 5th
C. 6th
D. 7th