In India’s quest to make doing business easier, the country was ranked first out of a total of 85 nations for low manufacturing costs, even ahead of neighboring China and Vietnam.
The country was ranked 31st in the overall ranking of best countries while it ranked 37th in the Open for Business category, according to a US News and World report. Switzerland topped the ranking of the best countries overall, followed by Germany, Canada, the US and Sweden.
The report ranks 85 nations based on 73 attributes grouped into 10 sub-categories including openness to business, quality of life, agility, entrepreneurship and adventure.
India is ranked 5th in the Mover category and 13th in the Power category with an overall score of 40.8. Its ranking in categories such as Entrepreneurship, Cultural Impact, and Quality of Life is 31, 34, and 38, respectively. In Heritage, its ranking is 8 and 40 in Agility.
In the open to business category, India’s score in the non-corrupt subcategory is 18.1, which is quite low. In the non-bureaucratic subcategory it is 81.9; 16 in “favorable tax environment”; and only 3.5 in “Transparent Government Policies”.
In entrepreneurship, India’s rank in the innovative subcategory is 21.1; 44.5 in skilled workers; and 62.5 in connectivity. In terms of well-developed infrastructure, legal framework and educated population, however, India ranks at the bottom with 3.7, 4.4 and 7.8.
China, on the other hand, ranks second in cheap manufacturing costs and 17th overall in the category of best countries. It ranks 2nd in the Power category, 5th in the Entrepreneurship category, and 51st in the Open for Business category. China is the 17th best country overall with a GDP of $17.7 trillion.
With a GDP of US$363 billion, Vietnam, another major global industrial hub, ranked 47th in the overall enterprise category. In terms of low production costs, it takes 3rd place; 40. in entrepreneurship; 30 in performance and 40 in quality of life.
