New Delhi, Jan 8: Commerce and Industry Minister Nirmala Sitharaman on Friday said the devaluation of the Chinese yuan is a concern because it will make Indian exports expensive and widen the trade deficit with Chi. “The depreciation of the yuan is definitely going to make imports from Chi cheaper..but the fact is my deficit with Chi will also grow,” she told media persons here following the first meeting of the Council for Trade, Development and Promotion.
“It is going to make imports from Chi even cheaper. Our products are going to be more expensive. So, that is an immediate black-and-white kind of a situation which is developing. “So, Chi wants to push goods into different countries, particularly India, and that would become even cheaper with the currency devaluation,” she added.
Chi further depreciated the yuan on Thursday, leading to regiol currencies and stock markets tumbling as investors feared Chi’s moves could trigger competitive currency devaluations from trading partners. (IANS)