China's popular state-owned tabloid The Global Times has warned the Chinese government against reposing over-confidence in its tradition manufacturing sector in the wake of increasing competition from India.

In an article titled "China should pay more attention to India's increasing manufacturing competitiveness," the nationalistic tabloid took a special note of India's export rebound to China in the month of January.

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"Official data showing India's January exports to China soared 42% year-on-year was overlooked by most Chinese analysts, but it will be a very dangerous venture if China adopts an arrogant attitude toward India's increasing competitiveness," it said.

The state-owned English tabloid urged Chinese scholars to make a thorough analysis of the recent surge in Indian export to ascertain whether this "is merely a flash in the pan" or is the result of some serious changes in the competitiveness of the manufacturing sector.

The article also lauded India's manufacturing sector's growth of 8.3 percent in the third quarter of 2016 and said that it was "......great achievement for India, even if the growth figure may be exaggerated as some analysts suggest." This praise, however, came with a dash of criticism as it cast serious suspicion on whether "India's higher-than-expected economic growth of 7% from October to December 2016 is authentic and reliable."   

On what could help India to surpass China in the manufacturing sector, the article claimed that New Delhi and also other emerging economies like Vietnam have an advantage over China with low labor costs. It cited a recent report that showed hourly wages in Chinese factories last year were roughly five times that in India.

Make in India Campaign

The "Make in India campaign" started by India's Narendra Modi government in 2014 has brought an unprecedented focus on the country's manufacturing sector. The ambitious campaign aims to promote India's manufacturing sector as a favorable destination for investment. The Indian government is believed to have spent a huge amount of money and resources on the "Make in India campaign."

The efforts seem to have yielded some initial results, with the Indian government inking agreements with some very big multinational corporations including well-known Chinese companies like Xiaomi and Foxconn.

Indian economists claim that the idea behind "Make in India" is to make India a global manufacturing hub, similar to China. Most economists, as well as Indian corporate houses, have unilaterally lent their support to the ambitious campaign.

Tagschina, India’s Manufacturing Sector, India and China, India