India feels under-valuation of yuan hampering Indian exports

Ajay Kaul
Tokyo, Oct 24 (PTI) As the US and China fight over the
Yuan, India feels that under valuation of the currency would
have adverse impact on it particularly when China's non-tariff
barriers are already posing a major hindrance to Indian
exports.
India feels there should be no competitive devaluation
of currencies, a view that was agreed at the G-20 Foreign
Ministers' meeting in South Korea two days back.
Under-valued Yuan affects Indian exports and imports,
sources said about the issue that may come up during the
meeting between Indian Prime Minister Manmohan Singh and his
Chinese counterpart Wen Jiabao in Vietnam on October 29.
New Delhi feels that the currency issue is much more
complex than valuation and structural adjustments are required
to ensure better global economic stability.
The US and China have lately been engaged in a war of
words over Yuan. The US has been saying that China had not
done much to ensure appreciation of the Yuan but the latter
has hit back saying that it is being pressurised.
In the context of China, sources note that Indian
exports are already hampered by the non-tariff barriers,
particularly in the sectors of services, IT, agriculture and
pharmaceuticals.
India has taken up this issue with China which has
promised to do something but nothing has been done so far,
they said. PTI