New Delhi: India Inc should take advantage of the rising manufacturing cost in China and push their products in the international market, Chief Economic Advisor Kaushik Basu on Friday said.

"India's big need is to push harder on exports... manufacturing exports, industrial exports, from all objective analysis India should do very very well," Basu said at an event organised by EXIM Bank here.

"China which occupied this space very very successfully for decades is becoming better off. The wages have at last started rising in China," he said.

"So, this space is being virtually conceded to India... we are not yet picking up with as much gusto (in) this area and beginning to export more," he said.

Highlighting that there are vast resources of cheap labour available in the country, Basu said, "a lot of this labour is unemployed... you do want to draw them into productive employment."

The depreciation of rupee is an opportunity in terms of pushing exports, he added.

Basu, however, said, India is doing very well in the services exports.

Further he said, that India should make an effort to give more Rupee denominated loans or aid to partner country.

"If we give out more rupee denominated loans or aid etc. to another country, one of thing you try do is to tell the recipient that you have to buy product from India," he said.

One advantage of giving rupee loans is the rupee is not yet an internationally convertible currency, he said, adding "once you do that you are tying down the hands of the recipient to buy from you."

Meanwhile, EXIM Bank announced the winner of International Economic Development Research Annual (IEDRA) Award 2011.

(Agencies)