India’s Sixth Place in Asia Manufacturing Index 2026

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India’s Sixth Place in Asia Manufacturing Index 2026: India ranked sixth among 11 Asian countries in the Asia Manufacturing Index 2026. The ranking reflects India’s steady progress in manufacturing capacity but also highlights gaps in competitiveness compared to faster-reforming Asian economies.
The index underlines the urgency for structural reforms, faster execution, and deeper industrial transformation.

Asia Manufacturing Index overview

The Asia Manufacturing Index (AMI) is an annual assessment released by Dezan Shira & Associates, a pan-Asian advisory firm. It evaluates the manufacturing strength of major Asian economies through a structured, data-driven framework.
Countries are ranked across eight pillars: economy, political risk, business environment, international trade, tax policy, infrastructure, workforce, and innovation.

These pillars are further divided into 43 sub-parameters, creating a multi-dimensional measurement of manufacturing readiness. The index focuses not only on current capacity but also on long-term industrial sustainability and competitiveness.

Static GK fact: Manufacturing contributes about 16–17% to India’s GDP, a share that has remained relatively stable for over a decade.

India’s position in the index

India’s 6th rank places it in the middle of Asia’s manufacturing ecosystem. The country benefits from a large domestic market, a growing labour force, and expanding infrastructure networks.
However, the index points to weaknesses in policy consistency, execution speed, and innovation depth.

India performs better in market size and workforce availability, but lags in advanced manufacturing, R&D integration, and high-value supply chains. This indicates that growth is still driven more by scale than by productivity and technology leadership.

Static GK Tip: India has one of the youngest workforces globally, with a median age of around 28 years, creating long-term demographic advantages for manufacturing.

Structural challenges for India

The index highlights persistent gaps in logistics efficiency, industrial productivity, and technology adoption. Skill mismatches between education output and industrial demand remain a key concern. Manufacturing growth is also uneven across regions, with industrial clusters concentrated in limited states.

Policy implementation delays and regulatory complexity continue to affect ease of doing business outcomes. The need for integrated industrial planning, digital manufacturing, and automation is becoming critical.

Performance of other Asian economies

China retained the top position, reflecting its strong infrastructure, integrated supply chains, and industrial depth. Malaysia emerged as second, overtaking Vietnam, which slipped to third. Singapore climbed to fourth, surpassing South Korea, which moved to fifth place.

These shifts show that Asian economies are actively upgrading industrial policies, improving infrastructure quality, and attracting global manufacturing investments. Competition is no longer based only on cost advantages but on innovation ecosystems and industrial efficiency.

Strategic implications for India

India must transition from scale-based manufacturing to technology-driven manufacturing. Focus areas include advanced manufacturing, semiconductor ecosystems, green manufacturing, and AI-enabled production systems. Strengthening supply chain resilience and industrial research capacity is essential.

Static GK fact: India’s National Manufacturing Policy targets raising manufacturing’s GDP share to 25%, reflecting long-term industrial ambitions.

Sustained reforms in skill development, industrial infrastructure, and innovation financing will determine India’s future rankings. Without faster execution, India risks losing momentum in Asia’s competitive manufacturing race.

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India’s Sixth Place in Asia Manufacturing Index 2026: