Key Takeaways
- China retains #1 rank in Asia Manufacturing Index 2026; India slips to 6th.
- Report flags India’s high logistics costs, low productivity as major hurdles.
- China’s output is more than double the next 13 economies combined.
China has held its position as Asia’s top manufacturing economy for 2026, while India has dropped one spot to sixth place. A new report from the National University of Singapore highlights critical challenges for India’s ‘Make in India’ initiative.
Asia Manufacturing Index 2026: The Full Ranking
The Asia Competitiveness Institute (ACI) assessed 14 major economies. The complete 2026 rankings are:
- China
- South Korea
- Japan
- Taiwan
- Singapore
- India
- Malaysia
- Thailand
- Vietnam
- Indonesia
- Philippines
- Bangladesh
- Pakistan
- Sri Lanka
Why India Slipped in the Rankings
India’s fall from 5th to 6th spot is linked to persistent structural issues. The ACI report identifies “low labour productivity, high logistics costs, and a challenging business environment” as the primary drags on competitiveness.
It specifically notes that India’s logistics costs rank among the highest in Asia, directly hurting its manufacturing sector’s ability to compete globally.
China’s ‘Formidable Advantage’
In stark contrast, China’s dominance remains unchallenged. The report credits its “unmatched scale, superior infrastructure, and deeply integrated supply chains.”
A staggering statistic underscores this lead: China’s manufacturing output is more than double the combined output of the next 13 economies on the list.
A Warning for ‘Make in India’
The report serves as a clear warning. It suggests that despite flagship policies like , India must urgently tackle these fundamental issues to move up the manufacturing value chain and compete with regional leaders like China and Southeast Asian nations.
