| Date: |
12-08-2015 |
| Subject: |
Indian exporters to suffer due to Chinese currency depreciation |
|
MUMBAI: For the already struggling Indian exporters the depreciation of Renminbi by the Chinese government would mean more bad news, a research report by India ratings said. India's exports to China that has been struggling for a while now would dip even further.
The Chinese government on Monday devalued its currency by about 2%. While the devaluation of Yaun (Renminbi) is unlikely to help Chinese exporters, it would definitely hurt Indian exports, the Ind-Ra report states. "The Chinese economy which has high trade linkages to growth, in a surprise move devalued its currency leading to a further widening of trade competitiveness for Indian exporters," the report said.
With global demand contracting, emerging markets are looking to grab pieces of the shrinking global trade pie. "India's key items of exports are petroleum products, gems and jewellery, chemicals and textiles. Key markets for Indian exporters are EU, USA, UAE, Hong Kong and China. Top Chinese exports include clothing, gems and jewellery, base metals and machinery which are some of the key items that India also exports. Key markets for Chinese exports are EU, USA, Hong Kong, Japan and South Korea. The high overlap in markets and also products, highlights the threat Indian exporter's face from China," the report said.
Currently China is also among the top five countries for Indian exporters. India's exports to the country declined by 19.5% to $11.9 bn in the last financial year.
Source : economictimes.indiatimes.com
|