India's exports of textile, gems & jewellery, handicrafts and leather, which directly compete with Chinese consignments in the western markets, will gain from a stronger Chinese currency
Indian exporters will be able to give competition to their Chinese rivals in the global market if the yuan appreciates in sync with the strength of China's economy, reports PTI.
India's exports of textile, gems and jewellery, handicrafts and leather, which directly compete with Chinese consignments in the western markets, will gain, director general of the Confederation of Indian Industry (CII) Chandrajit Banerjee said.
"We expect our exporters to benefit from such a move (yuan appreciation)," Mr Banerjee said.
He said the extent to which the domestic industry benefits would depend on the degree of the yuan rise.
In fact, the Chinese currency soared today to its highest level against dollar since July 2005 when it was revalued.
Federation of Indian Export Organisations (FIEO) president A Sakthivel said the quotations from the Chinese suppliers do not reflect the real value of the dollar, hurting the Indian interests.
Apparel Export Promotion Council senior vice-chairman Praveen Nayyar said, "If it happens it will definitely benefit the country."
China had a trade surplus of $196 billion and current account surplus of $284 billion in 2009 showing the strength of its economy. However, the US and other western countries had accused it of keeping its currency artificially low to help Chinese exporters.
Meanwhile, finance minister Pranab Mukherjee said in Washington that China's decision to make its currency more flexible would help the world economy, though it would not have "that much impact" on the bilateral relationship.
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Petrol price may go up by Rs3.73 a litre; a marginal hike in diesel price is also on the cards
An empowered group of ministers (EGoM) will meet in New Delhi on 25th June to consider possibly freeing petrol prices from government control and marginally hiking diesel prices, reports PTI.
Sources said petrol price will go up Rs3.73 a litre if the domestic prices are aligned with international rates.
Petrol in Delhi currently costs Rs47.93 per litre.
"Friday is the meeting of EGoM," petroleum minister Murli Deora told reporters, but refused to spell out the agenda.
Domestic retail prices of petrol and diesel are benchmarked at close to $60 per barrel crude oil price, while the global rates currently are over $77 a barrel.
Mr Deora has already asked states to lower sales tax on petrol and diesel to cushion consumers from the impact of fuel price hike, if any.
"A rise in the international oil prices exerts an upward pressure on domestic prices of petroleum products," he wrote to states. "Ad valorem rates of value added tax (VAT) imposed by the state governments further aggravates the impact of international oil prices on the consumers."
Sources said any decision to hike fuel prices would have to have the consent of the United Progressive Alliance's (UPA) alliance partners, railway minister Mamata Banerjee (Trinamool Congress-TMC), and agriculture minister Sharad Pawar (Nationalist Congress Party-NCP), given the inflationary impact of the decision.
In May, WPI-based inflation was 10.16%.
Dravida Munnettra Kazhagam (DMK) leader and fertiliser minister M K Alagiri is on board the decision to raise fuel prices, sources said, adding that the EGoM would try to build consensus.