Chinese media: Beijing can't overlook increasing competitiveness of Indian manufacturing sector
China cannot overlook the increasing competitiveness of the manufacturing sector in India and should pay more attention to India's increasing manufacturing competitiveness, said an article.
New Delhi: China cannot overlook the increasing competitiveness of the manufacturing sector in India and should pay more attention to India's increasing manufacturing competitiveness, said an article.
According to the piece, there has been a lot of discussion about whether India's higher-than-expected economic growth of 7 percent from October to December 2016 is authentic and reliable.
"Meanwhile less attention is being paid to bright points in the country's economy. What cannot be overlooked is the increasing competitiveness of the manufacturing sector in India," it said.
The article titled "China should pay more attention to India's increasing manufacturing competitiveness," said India's manufacturing sector still grew 8.3 percent in the third quarter of the country's fiscal year despite Narendra Modi's demonetization move putting a dent in India's economic momentum.
Praising India's manufacturing growth, the article further said it is a great achievement for the former.
"The rapid growth in India's manufacturing sector is likely to continue. The Nikkei India Manufacturing Purchasing Managers' Index grew to 50.7 in February from 50.4 in January, suggesting an expansion of activity in the sector," it added.
The article claimed that India's has great potential to emerge as a regional hub for labor-intensive industries despite the country being in its initial stage of developing export-oriented manufacturing industries.
"One recent analysis showed China's manufacturing hourly wage in 2016 was roughly five times that in India," the article said.
Asserting that rapid economic expansion in India is a good thing for China as China's consumer market matures, the article however, said that Chinese manufacturers will inevitably face increased competition from Indian firms at the same time.
"As labor costs climb in China, Vietnam has become an emerging manufacturing nation, but China doesn't need to panic. However, manufacturing development in a large country like India means more pressure on China. The increasing competitiveness from India's manufacturing sector is a issue of strategic importance and deserves more attention," it said. (ANI)