India Ranks Sixth in Asia Manufacturing Index 2026, Faces Intensifying Regional Competition

India Placed Sixth in Asia Manufacturing Index 2026

India has secured the sixth position among 11 Asian economies in the Asia Manufacturing Index (AMI) 2026 , underlining both its significance as a manufacturing hub and the structural challenges it continues to face. The ranking reflects rising competition across Asia as economies strengthen their industrial ecosystems to attract global investment and integrate deeper into global value chains.

About the Asia Manufacturing Index

The Asia Manufacturing Index is released annually by Dezan Shira & Associates , a Hong Kong–headquartered market entry and advisory firm. Now in its third edition , AMI evaluates manufacturing competitiveness using a robust framework covering eight pillars and 43 sub-parameters .

Key assessment areas include infrastructure quality, labour availability and cost, regulatory environment, market access, tax regimes, supply-chain resilience, logistics efficiency, and long-term investment viability. The index is closely followed by multinational firms, policymakers, and investors assessing Asia’s shifting manufacturing landscape.

India’s Rank and Regional Comparison

In the AMI 2026 , India ranked sixth , lagging behind several Asian peers that have moved faster on industrial reforms and logistics upgrades. Notable shifts include:

• Malaysia climbing to second place for the first time

• Vietnam slipping to third position

• Singapore rising to fourth , overtaking South Korea , which fell to fifth

These changes highlight how both emerging Southeast Asian economies and advanced manufacturing nations are aggressively enhancing competitiveness.

What the Ranking Means for India

India’s position indicates that while it remains a major manufacturing destination due to market size and workforce availability, relative weaknesses persist . Countries ranked higher have achieved quicker gains in industrial infrastructure, port and logistics efficiency, regulatory predictability, and integration with global production networks.

For India, the index reinforces the urgency to:

• Accelerate ease-of-doing-business reforms

• Strengthen industrial clusters and logistics corridors

• Improve policy stability and contract enforcement

• Move up the value chain through technology and skill upgrading

These steps are essential if India is to convert scale into sustained manufacturing leadership.

Imporatnt Facts for Exams

• Asia Manufacturing Index is released by Dezan Shira & Associates

• AMI 2026 evaluates 11 Asian manufacturing economies

• The index uses eight pillars and 43 sub-parameters

• India ranked sixth, while Malaysia ranked second in AMI 2026

Rising Manufacturing Competition in Asia