Appreciating Yuan not to have a huge impact on India: Expert.

An appreciation in the Chinese currency Yuan might not have a huge impact on India, a noted global currency expert said.

"A Yuan appreciation may not have a huge impact on India," currency expert and Non-Executive Director of Elara Capital, Avinash Persaud, said in Mumbai on Thursday.

Persaud is the Chairman of Intelligence Capital, a firm that advises Governments of many G-20 countries on managing their finances and an expert member of the UK Government's Treasury Group.

"The Yuan appreciation is illegitimate and does not have any economic ground," he said, adding "...if China gets expensive, we will import from other cheaper countries like the Philippines or ASEAN countries."

According to him, Chinese surpluses will not make a huge impact on the global economy as well.

"If China ran surpluses as large as its deficits, it would impact the global economic growth by 0.1 or 0.2 per cent.

China is a great economy. But it is (only) one-fifth of the US. And it hasn't gone through two major adjustments India has already undergone. One is democracy and the other, private entrepreneur-driven economy," Persaud said.

Recently, Indian Commerce and Industry Minister, Anand Sharma, had expressed concern over the exchange rate vis-à-vis Yuan and said that the policy should be such that Indian exporters are not disadvantaged.

Source : PTI