Ahmedabad: Commerce Minister Arun Jaitley on September 30 said India would continue to maintain its competitive advantage over China in services sector in the coming years.

Delivering the valedictory address at 'Vibrant Gujarat Global Investors Summit' in Ahmedabad, he acknowledged that China was ahead of India in the manufacturing sector owing primarily to better infrastructure and relaxed labour regulations.

Urging states to reform their labour laws, Jaitley said there was a demand from reform-oriented states to transfer powers in case the Centre was unable to implement the needed changes.

Jaitley said Prime Minister Atal Behari Vajpayee had assured the Inter-State Council in August that he would set up an inter-ministerial group to facilitate changes proposed by states, which fell within the realm of concurrent list.

He said over the last few years India had begun to invest heavily in its infrastructure network, which would go a long way in boosting economic growth.

Talking about the potential advantages India possessed in the services sector, the minister remarked that export of human capital would emerge as a major area of trade further adding to the outsourcing boom currently underway.

He said health care was an emerging area for future growth with western governments encouraging patients to travel abroad for treatment being provided by countries like India at fraction of the cost in those countries.

PTI