India Ranks Sixth in Asia Manufacturing Index 2026

India has ranked sixth among 11 Asian economies in the Asia Manufacturing Index (AMI) 2026, highlighting the need to strengthen its manufacturing competitiveness amid intensifying regional competition. The index evaluates the relative performance of major manufacturing hubs across Asia using a detailed, multi-dimensional framework.

About the Asia Manufacturing Index

Now in its third year, the Asia Manufacturing Index is released by Dezan Shira & Associates, a pan-Asian market entry advisory firm headquartered in Hong Kong. The AMI assesses manufacturing competitiveness across eight key pillars and 43 sub-parameters, including infrastructure, labour, market access, regulatory environment, and supply chain resilience. The index is widely tracked by investors and policymakers to understand shifts in Asia’s manufacturing landscape.

India’s Position and Regional Comparison

In the 2026 rankings, India placed sixth, trailing several key Asian competitors. Malaysia recorded a significant improvement, moving up to second place for the first time, replacing Vietnam, which slipped to third. Among developed manufacturing economies, Singapore climbed one rank to fourth position, overtaking South Korea, which fell to fifth. These shifts underline the growing intensity of competition within Asia’s manufacturing ecosystem.

Implications for India’s Manufacturing Ambitions

India’s sixth-place ranking suggests that while it remains a significant manufacturing destination, gaps persist in comparison with leading Asian peers. The index indicates that countries performing better have made faster progress in logistics efficiency, industrial infrastructure, regulatory clarity, and integration with global value chains. For India, the results signal the need to accelerate reforms, improve ease of doing business, and strengthen industrial clusters to remain competitive in the evolving global manufacturing race.

Imporatnt Facts for Exams

• Asia Manufacturing Index assesses manufacturing competitiveness of Asian economies.
• AMI 2026 covers eight pillars and 43 sub-parameters.
• Malaysia ranked second, while India ranked sixth in AMI 2026.
• Singapore overtook South Korea among developed Asian economies.

Rising Regional Competition in Manufacturing

The AMI 2026 highlights a broader trend of intensifying competition across Asia as economies position themselves as alternatives and complements within global supply chains. With Southeast Asian nations improving rapidly and developed economies refining high-value manufacturing, the index underscores the urgency for India to scale up productivity, innovation, and policy execution to secure a stronger position in Asia’s manufacturing hierarchy.