Step 1: Recall the formula for modulation index.
In amplitude modulation (AM), modulation index is given by
\[
m=\frac{V_m}{V_c}
\]
where
\[
V_m=\text{peak voltage of modulating signal}
\]
and
\[
V_c=\text{peak voltage of carrier wave}
\]
Step 2: Identify the given values.
Given:
\[
V_m=12\ \text{V}
\]
and
\[
V_c=20\ \text{V}
\]
Step 3: Calculate the modulation index.
Substituting the values,
\[
m=\frac{12}{20}
\]
\[
m=0.6
\]
Step 4: Final conclusion.
Hence, the modulation index is
\[
\boxed{0.6}
\]