And why exactly would manufacturing jobs go to India? Is there some preexisting manufacturing industry I'm not aware of?
There's also the fact that China appears to be heading for a serious problem with respect to the age of its population. Conversely, India is expected to maintain population growth for at least a couple decades longer than China.
(1) http://www.pwc.com/en_GX/gx/world-2050/pdf/world-in-2050-jan...
It's also less politically sensitive in the US. Americans have a knee-jerk reaction to China that goes far beyond outsourcing and call center complaints. India is seen as an ally rather than a potential military threat.
- India's domestic consumption accounts for 57% of the GPD.
- India's housing bubble is not even close to what has been going on in China.
- 650 million Indian's are estimated to live on $2 a day (100 millions in china).
- India's population will overtake china's during the 2020's
OTHO, India has other problems like endemic corruption, less investment in infrastructure, or terrible levels of inflation for example.