Industrial development has become one of the main indicators for understanding the direction of the global economy. In a context where supply chains are transforming, emerging economies are playing an increasingly important role in the reconfiguration of international manufacturing.

According to the most recent analysis of FINSA's Industrial Development Index (IDI), countries like Mexico, India, and Vietnam stand out for their manufacturing capacity and integration into global trade, positioning themselves as key players in this new dynamic.

Industrial Economy and Industrial Development in Emerging Economies

The index's approach is based on a clear premise: the industrial economy can no longer be evaluated solely by the size of its manufacturing output.

Dimensions of the FINSA Industrial Development Index

According to the IDI, the analysis is composed of five dimensions: the industrial economic environment —which reflects the current strength of the manufacturing base— and four enablers of future development: logistics, social environment, sustainability, and talent and innovation.

These dimensions are analyzed using 33 indicators from international sources, allowing for homogeneous comparisons between economies in Latin America, Asia, and Africa.

“In an increasingly challenging international environment, global value chains are evolving into more resilient and diversified models. This opens up significant opportunities for emerging economies that can offer stability, talent, and competitive industrial capabilities,” commented Sergio Argüelles, President of FINSA.

Manufacturing in Mexico: A Solid Foundation in the Global Industrial Economy

Within this analysis, manufacturing in Mexico stands out for its structural strength and its integration with international trade.

Manufacturing Exports and Weight in the Economy

With $463 billion in manufacturing exports in 2023, Mexico is positioned as the leading exporter among the 14 countries analyzed, followed by Vietnam ($300 billion), India ($273 billion), Malaysia ($214 billion), and Turkey (208 billion).

Likewise, manufacturing GDP reached $352 billion, equivalent to about 20% of the national GDP, reflecting the strategic importance of the industry within the economy.

Trade Integration as a Competitive Advantage

The index also highlights Mexico's extensive network of trade agreements, with 23 free trade agreements, positioning it as one of the most open economies within the group analyzed.

These conditions have allowed the country to consolidate its position as one of the most relevant manufacturing platforms within global production chains.

Logistics: An Opportunity to Strengthen Industrial Development

The The index analyzes the logistical enablers of future industrial development, considering variables such as infrastructure quality, logistical efficiency, digital connectivity, and cargo movement.

Infrastructure and Logistical Efficiency

In this dimension, the analysis identifies relevant opportunities for Mexico. While economies like South Africa, Malaysia, and Thailand stand out in the World Bank's Logistics Performance Index, Mexico still faces challenges in infrastructure and logistics efficiency.

The study suggests that greater investment in infrastructure and connectivity would allow the country to capitalize on its geostrategic position in international trade.

Social Environment: A Key Enabler of Industrial Development

The IDI also incorporates social variables that directly influence the sustainability of industrial growth. These are analyzed... human development indicators, rule of law, security, institutional legitimacy, and labor participation.

Human and Institutional Development

Countries like Chile and Costa Rica stand out for their performance in indicators related to human development, transparency, and institutional quality.

In the case of Mexico, the analysis identifies challenges in the perception of corruption, the rule of law, and the presence of organized crime, factors that can influence the perception of investment risk.

Labor Force as a Structural Advantage

However, Mexico has a significant demographic base, with 61 millions of people in the workforce, which represents a significant advantage over other emerging economies.

Sustainability: a strategic variable for the industrial economy

Sustainability has become a central component in industrial decision-making globally. The index also examines variables such as investment in renewable energy, clean energy consumption, energy efficiency, and preparedness for climate change. These are acquiring increasing importance in industrial investment decisions globally.

Regulation and Energy Efficiency

In this dimension, Mexico stands out in the energy efficiency regulation indicator of the World Bank's RISE Index, where it shares first place with Brazil.

Challenges in Renewable Energy and Climate Resilience

However, the index identifies areas of opportunity in investment and consumption of renewable energy, as well as as in preparing for risks associated with climate change.

Talent and innovation: the structural challenge of emerging economies

Talent development and innovation capacity are key to the evolution of industrial development. Finally, the index analyzes spending on research and development, medium- and high-technology manufacturing production, scientific publications, and technological capital.

Medium and high-technology manufacturing

In Mexico, 42% of manufacturing value added corresponds to medium and high-technology manufacturing, which positions the country among the most advanced in the group in this indicator.

Investment in research and development

However, the level of investment in research and development —close to 0.3% of GDP— This represents a structural challenge compared to other emerging economies with more innovation-oriented strategies.

The future of industrial development in emerging economies

The FINSA Industrial Development Index offers a comprehensive view of the current state of manufacturing in emerging economies and the factors that will define their future competitiveness.

“In the current context, understanding how these variables are evolving is key for emerging economies to strengthen their position within global value chains and take advantage of the opportunities arising from the transformation of international manufacturing,” he added. Sergio Argüelles, CEO and President of FINSA.