CM KCR “Better Safe than Sorry” for newly born Telangana

kcr tour of China 2015

After China devalued the yuan by over 4 percent drop in its currency which fortify US dollar & made Indian rupee sank to 66.24 per dollar, the yuan’s devaluation could direct to a full fledged “currency war”. As the rupee volatility is mounting day by day, exports will come under huge pressure which leads to dumping of Chinese goods in India market crashing Domestic manufacturers.

Yuan’s devaluation Will Impact Three major things in India:
1. Rupee volatility 2. Pressure on Exports 3. Dumping of Chinese goods

1. Rupee volatility: The steep fall in the rupee by now has created panic in stock markets, if the rupee continues to fall sharply; imports will become expensive, stoking inflation. Forcing the Reserve Bank to hold on to high interest rates, this in turn will slow down the ongoing economic recovery.

2. Pressure on Exports: India and the China markets have huge common characteristics between each other and also furthermore items highlight the risk of Indian exporter’s face from China. So India and China compete for quite a lot of export items such as Textiles, Chemicals, Metals, Consumables, Gems and Jewellery, E-commerce etc. will likewise conflict with residential exporters.

3. Dumping of Chinese goods: The rupee volatility and sharp devaluation in yuan will aid China dump its goods into the Indian market, which will crash domestic manufacturers.

The message is very clear from the action of People’s Bank of China and the Chinese authorities that they would like to hold up their market under any circumstance by dumping their goods into other countries. It is evident that the Chinese financial system is not as strong as the market believes since 2013. So Telangana CM please Look before you leap.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>