India Ranks Sixth in Asia Manufacturing Index 2026
India has ranked sixth among 11 Asian countries in the Asia Manufacturing Index (AMI) 2026. The ranking shows that India is making progress in manufacturing, but stronger efforts are needed to compete with leading Asian economies.
The index compares major manufacturing countries in Asia and highlights where each country stands in terms of industrial strength and readiness.
What is the Asia Manufacturing Index (AMI)?
The Asia Manufacturing Index is released by Dezan Shira & Associates, a Hong Kong–based advisory firm.
The index measures manufacturing competitiveness using:
- 8 key pillars
- 43 sub-parameters
These pillars include economy, political risk, business environment, trade, tax policy, infrastructure, workforce, and innovation.
The aim is to compare how ready Asian countries are for long-term manufacturing growth.
India’s Position: Key Points
India stands in the middle of the Asian manufacturing ranking.
The country has advantages such as:
- A large domestic market
- Improving infrastructure
- A young and growing workforce
However, the report notes that India is slower than top countries in policy execution, innovation, and industrial efficiency.
To move up in future rankings, India needs better logistics, skill development, stable policies, and faster technology adoption.
How Other Asian Countries Performed
China remained at the top position for the third year in a row due to its strong industrial base and supply chains.
Malaysia moved up to second place for the first time, while Vietnam slipped to third.
Among developed economies, Singapore rose to fourth place, overtaking South Korea, which fell to fifth.
These changes show that Asian countries are actively improving policies and infrastructure to attract manufacturing investment.
What’s New in AMI 2026?
Two key updates were added this year:
- A record of past rankings to allow year-by-year comparison
- A new 1–100 scoring system for each parameter, making results more transparent
This helps investors and policymakers understand strengths and weaknesses more clearly.
Conclusion
The Asia Manufacturing Index 2026 confirms that Asia remains the global manufacturing hub. India’s ranking shows stability, but not rapid progress.
To compete with faster-moving Asian economies, India needs a sharper manufacturing push with strong reforms, better execution, and focus on innovation.
