The New York Times writes:
Indias annual growth in manufacturing output, at 9 percent and accelerating, is close to catching growth in services, at 10 percent. Exports of manufactured goods to the United States are now rising faster in percentage terms than Chinas, although from a much smaller base. More than two-thirds of foreign investment in the last year has gone into manufacturing in India, not services.
A prime reason India is now developing into the worlds next big industrial power is that a number of global manufacturers are already looking ahead to a serious demographic squeeze facing China. Because of Chinas one child policy, family sizes have been shrinking there since the 1980s, so fewer young people will be available soon for factory labor.