Bengaluru: The state has emerged on top in manufacturing excellence, according to a study by the Associated Chambers of Commerce and Industry of India (Assocham).

“Karnataka has the best manufacturing process ratio of 2.63 with maximum value of goods being converted into finished goods,” according to the study titled ‘Manufacturing Excellence and Emergence in India’.

Maharashtra, with a ratio of 1.20, topped in terms of pacts signed by micro, small and medium enterprises at district industrial centres during 2014-2015.

The trade body’s economic research bureau took into consideration parameters such as the number of factories, output value, working capital, net fixed capital formation among others to arrive at the performance of States.

While development process in other nations followed a transition from agriculture to manufacturing and then toward the service sector, India’s growth has been led by the services sector and ‘there have always been concerns about the sustainability of such a growth’, the study stated.

Poor product quality, infrastructural bottlenecks and inadequate efforts at research and development have collectively taken a toll on the country’s manufacturing competitiveness, according to the study.