China's move to allow the yuan to appreciate will help the domestic exporters compete better with their Chinese counterparts in the global market, especially in areas like textiles, leather and handicrafts.
Leaders of the industry and export organisations feel that the Chinese exporters will no more be able to quote artificially low rates to the buyers.
"We expect exporters of textiles, chemicals and light engineering goods to benefit from such a move," CII director general Chandrajit Banerjee said.
Federation of Indian Export Organisations president A Sakthivel said the quotations from the Chinese suppliers do not reflect the real value of the dollar, hurting the Indian interests. "They will get real value of the yuan. Chinese exporters have to quote real value of the dollar," Sakthivel said.
However, Banerjee said the extent to which the domestic industry benefits will depend on the degree of the yuan rise. Apparel Export Promotion Council senior vice-chairman Praveen Nayyar said, "if it happens it will definitely benifit the country." China had kept its currency at about 6.83 per dollar since July 2008. Exporters of India and China fight fiercely in the US and European market.
Meanwhile, RBI deputy governor Subir Gokarn said in Mumbai that the central bank is evaluating the possible impact of the Chinese move, especially on the rupee exchange rate and trade and capital flows.
China on Saturday said it would "proceed further with the reform" of the renminbi/yuan exchange rate regime to "enhance its exchange rate flexibility".
Source:www.Ecnomictimes.com
Posted By : Mayur Naik
No comments:
Post a Comment