In order to prevent dumping of Chinese goods into country, Commerce Minister Nirmala Sitharaman has said that government is aware of the impact of Chinese Yuan devaluation and is taking all steps to control this and will safeguard the interests of Indian exporters and manufacturers. The minister further stated that the devaluation of Chinese yuan is a serious issue, which can lead to a situation where China can push its products in markets like India, consequently Indian exports may come down and country’s exporters are likely to face bigger challenge.
Sitharaman added that the government is monitoring several sectors that might be affected by the Chinese yuan devaluation and is also talking with various industry bodies on the issue. In addition, she highlighted ‘Dumping will not be entertained, wherever there is an artificial price reduction, which is what happening through China now, we will make sure safeguard clauses are invoked’.
In June 2015, country’s exports declined by15.82% to $22.28 billion. Merchandise exports from India have been declining continuously for the previous seven months. Cost of production of steel in India was nearly 1.4 times the figure in other parts of the world and yuan devaluation will make it even more uncompetitive in comparison with Chinese products.