Global manufacturing companies are sitting on "large cash reserves", according to the World Economic Forum.
Releasing a new report on Tuesday (24 April 2012), titled the future of manufacturing, the WEF said India's top 500 companies had cash reserves amounting to US$96 billion, while the top 100 global manufacturing companies were holding more than $700 billion in cash and equivalents, up from about $400 billion in 2005.
"The opportunity to marry these idle funds with latent manufacturing capacity amid the right conditions - that is consistent, transparent, industrial policy - is readily apparent," the report noted.
The report also highlighted that the global appetite and competition among countries for foreign direct investment (FDI) in sectors, especially manufacturing, was increasing.
The report was compiled in collaboration with Deloitte Touche Tohmatsu Limited.
Countries sought FDI to create jobs, tax revenues, and demand for goods and services domestically, the report said.
"Similarly, by bringing these operations within their borders, countries are also supporting the advancement of their labour force's productive capabilities," it said.
