While trade between India and China has grown, it is India that imports more from China. Moreoever, the Indian export basket is limited and dependent on primary goods. Ultimately, India has to exploit its advantage in labour costs to tie them with large-scale manufacturing. Just because Thailand or Vietnam have low labour costs doesn't mean India should cede ground to them. If we get our act together and aggresively put in place a framework to export manufactured goods, then we will generate a lot of employment and have ultimate bargaining power with SE Asian nations.