The World Economic Forum on Friday ranked India 30th on a global manufacturing index, which measures which countries are best placed to benefit from the changing nature of production due to improvements in technology. As many as 100 countries were included in the “Readiness for the Future of Production Report 2018”.

India was ranked 30th on the structure of production, or the baseline of production in the country today, which takes into account the scale and complexity of production. Among BRICS countries, India is ranked behind China (which is at fifth place) but ahead of Brazil, Russia and South Africa.

All countries were also ranked on the drivers of production – which include the level of technology and innovation, human capital, sustainable resources, demand etc. India was ranked 41st on this parameter.

Japan was ranked first on the structure of production, and the United States on the drivers of production.

The report, which analyses development of modern industrial strategies across the world, has categorised the 100 countries into four different groups – Leading countries (strong current base of production and high level of readiness for the future), High Potential countries (limited current base, high potential for future), Legacy countries (strong current base, at risk for the future, and Nascent countries (limited current base, low level of readiness for the future).

India has been categorised as a “legacy” country, along with Russia, Hungary, Mexico, Philippines, Thailand and Turkey among others. China is said to be a “leading” country, while South Africa and Brazil have been included in “nascent” countries.

The World Economic Forum said India is the fifth largest manufacturer in the world, with a total manufacturing value of $420 billion (Rs 26 lakh crore) in 2016. The international group said that India’s manufacturing sector had grown by an average of 7% per year over the last three decades, and accounted for 16%-20% of the country’s Gross Domestic Product.

“Home to the second-largest population in the world and one of the fastest growing economies, the demand for Indian manufactured products is rising,” the report added. “India has room for improvement across the drivers of production, except for demand environment where it ranks in the top five.”

The report said India needed to continue raising the capabilities of its young and fast-growing labour force. It called for upgrading education curricula, revamping vocational training programmes and improving digital skills. The report also recommended expansion of India’s energy sources and reduction of carbon emissions as its manufacturing sector continues to grow.