India on Friday said that the devaluation of the Chin-ese currency is a “worrying” development which will make Indian exports expensive and widen the trade deficit with the neighbouring nation.
India on Friday said that the devaluation of the Chin-ese currency is a “worrying” development which will make Indian exports expensive and widen the trade deficit with the neighbouring nation.
Commerce and industry minister Nirmala Sithara-man said that the devaluation of the yuan will make imports cheaper from China to India. “The depreciation of the yuan is definitely going to make imported goods (from China) cheaper... the fact is my deficit with China will (also) grow,” she told reporters here.
In 2014-15, the bilateral trade between India and China stood at $72.3 billion with the trade gap at $49 billion. The government and the Indian indu-stry have time and again raised concerns about the widening deficit.
India has been pushing China to give greater market access to Indian products such as agri, IT and pharmaceuticals.
She said that currency volatility is a cause for concern because your exports are remaining the same... but you won’t earn out of it.
