Delhi ranked most competitive city in Manufacturing Competitiveness Index 2014

Delhi has emerged as the most competitive city-state in a new report that has done an in-depth assessment of states in India according to different stages of development on the Manufacturing Competitiveness Index.

The Manufacturing Competitiveness Report 2014 found that Delhi has done well on all the 4 factors of manufacturing competitiveness.

The aim of the report is to measure manufacturing competitiveness and suggest ways to significantly enhance it for various sub-national regions in the Indian context.

The states have been categorized according to various stages of development of manufacturing. This helps in comparison between states at a similar level of manufacturing development.

The report will be of use to corporates/ industry bodies and governments who are seeking to understand and enhance manufacturing competitiveness.

Manufacturing is a crucial determinant of success of any industrial nation. India's manufacturing sector amounting to just 15 percent of the GDP reflects a deep structural problem with the Indian economy.

The index is thus constructed based on 4 interrelated factors of Company Operations and Strategy (COS), State Business Environment (SBE), Social Infrastructure and Political Institutions (SIPI) and Macroeconomic Indicators (MI).

Based on the methodology states and union territory of Delhi were divided into 6 categories based on the stage of manufacturing development. These are city-states bracket, strong states, medium to strong bracket, medium bracket, weak to medium bracket and weak bracket.

The report found that Delhi emerged as the most competitive city-state on the Manufacturing Competitiveness Index.

Delhi has done well on all the 4 factors of manufacturing competitiveness. Maharashtra has done particularly well on the business environment factor of the framework used of measurement.

Andhra Pradesh has done well on the business environment and macroeconomic indicator factors of manufacturing competitiveness index.

Uttar Pradesh has done considerably better than peers in the same category on the company operations and strategy and macroeconomic indicator factors of manufacturing competitiveness index.

West Bengal has done well relatively on the business environment and macroeconomic indicator factors of the manufacturing competitiveness index.

Tripura has done well on the social and political institution factor of the manufacturing competitiveness index.