What will China do now? India has emerged as the leader in manufacturing… the Dragon has slipped to second place

India is ahead of China in terms of lowest manufacturing cost-Photo- ANI

India Manufacturing Cost: India has remained the fastest growing economy in the world for a long time and in many cases the country is reaching the number-1 position, now it has reached the top among the countries with the lowest manufacturing cost, which is a matter of concern for the Dragon (China).

Whether it is tariff tension from America or tension with Pakistan (Indo-Pak tension), India is moving ahead in many matters including economic growth. Recently, the Indian economy has proved this by leaving Japan behind and becoming the fourth largest economy. Not only this, the country has made its mark in the world in both manufacturing and service sectors. Now a fresh figure has come out and according to this, India has also reached the top in terms of the cheapest manufacturing cost. Yes, the dragon i.e. China is also behind India. The figures released by the World of Statistics citing US News and World Report are going to increase the concern for Pakistan’s friend China.

India on top, China slips

Recently, India topped the global charts in both manufacturing and service activities. According to the Purchasing Managers Index (PMI) data released by JP Morgan, India’s manufacturing PMI was 58.2 in April 2025, while its service PMI was recorded at 58.7. These figures put India at the top among developed and emerging markets. It is worth noting that PMI is a major index reflecting the financial health in the manufacturing and service sectors and being above 50 means that there is expansion in that sector. Below this indicates contraction. In this case, not only China and America, but France is also behind India.

Now a figure has come to the fore, which is related to manufacturing and is a cause of concern for China. Actually, India is the cheapest country in the world in terms of manufacturing cost. So far, China, which is known as the ‘factory of the world’, comes after India and Vietnam is on the third position. The data released by the World of Statistics quoting US News and World Report, has India on the top. This list mentions 89 countries with the lowest manufacturing cost. In the top-10, after India, China and Vietnam, Thailand is on the fourth position, Philippines on the fifth, Bangladesh on the sixth, Indonesia on the seventh, Cambodia on the eighth and Malaysia and Sri Lanka on the ninth and tenth positions respectively.

Where is the highest manufacturing cost?

If we look at the latest list shared by World’s of Statistics on social media platform X (earlier Twitter), while countries like India and China have the lowest manufacturing cost, France is ahead in terms of the highest manufacturing cost. After this comes Britain and Switzerland. In this case, along with Australia, Germany, Canada, the name of America is also included.

Where the manufacturing cost is high.

How is it beneficial for India?

Lowesat manufacturing cost in India can be of great benefit to the country’s economy. Due to low cost, it can become the most favorite and economical manufacturing destination for the big companies of the world and these companies from other countries can insist on setting up their units in India. Its direct impact will be seen on the foreign direct investment i.e. FDI coming to India. If this happens, then it can prove to be the biggest blow for China, from where many big companies have already been attracted towards India along with their business.