India Ranks Sixth in Asia Manufacturing Index 2026

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India has been ranked sixth out of 11 Asian economies in the Asia Manufacturing Index (AMI) 2026, underscoring the need to bolster its manufacturing competitiveness amid rising regional rivalry. The index offers a comparative assessment of Asia’s major manufacturing hubs through a comprehensive, multi-dimensional framework.

About the Asia Manufacturing Index

Now in its third edition, the Asia Manufacturing Index is published by Dezan Shira & Associates, a Hong Kong–headquartered pan-Asian market entry advisory firm. The AMI evaluates manufacturing performance across eight core pillars and 43 sub-parameters, covering areas such as infrastructure, labour availability, market access, regulatory environment, and supply chain resilience. It is closely followed by investors and policymakers seeking insights into evolving manufacturing dynamics across Asia.

India’s Ranking and Regional Shifts

In the 2026 standings, India secured the sixth position, lagging behind several regional competitors. Malaysia emerged as a major gainer, climbing to second place for the first time, displacing Vietnam, which slipped to third. Among advanced manufacturing economies, Singapore moved up one rank to fourth, overtaking South Korea, which dropped to fifth. These changes reflect the increasingly competitive nature of Asia’s manufacturing landscape.

What the Ranking Means for India

India’s mid-tier placement indicates that while it remains an important manufacturing destination, it continues to face structural challenges relative to top-performing peers. According to the index, higher-ranked economies have advanced more rapidly in areas such as logistics efficiency, industrial infrastructure, regulatory certainty, and integration into global value chains. For India, the findings highlight the urgency of faster reforms, improved ease of doing business, and stronger industrial clusters.

Intensifying Manufacturing Competition Across Asia

The AMI 2026 points to a broader trend of intensifying competition as Asian economies position themselves as both alternatives and complements within global supply chains. With Southeast Asian nations accelerating their progress and developed economies focusing on high-value manufacturing, the index reinforces the need for India to boost productivity, innovation, and policy implementation to strengthen its standing in Asia’s manufacturing hierarchy.

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