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Devaluation of the Chinese currency yuan is a serious issue and could lead to a situation where China dumps its goods into India, Union Minister of State for Commerce and Industry (Independent Charge) Nirmala Sitharaman has said.
The Centre is taking all steps to control this and to safeguard the interests of Indian exporters and manufacturers, she added.
“China's yuan is definitely a very serious issue, it can lead to a situation where China will push more of its goods into markets like India. The ministry is working to get the situation changed to improve the exports,” Sitharaman said.
She added that the ministry is aware that exports are down and with the yuan devaluation exports from India will face an even greater challenge.
“I can assure the Indian manufacturers that we shall take every step to protect the Indian manufacturing sector, every step to stop dumping of goods into India. We shall safeguard our manufacturing interest,” said Sitharaman.
“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,” the minister added.
The Chinese government has allowed the yuan to fall about 4% against the US dollar this week.
“Chinese currency can become a reserve currency, probably it is one of the reason they aretrying to open it up for market price fixation,” she said.
The government is monitoring several sectors that might be affected by the yuan devaluation and talking to various industry bodies on the issue, Sitharaman added.
Indian exports, the minister said, are down 6% as global demand is coming down. European countries, which are one of the major markets for Indian exporters, are stagnated and issues related to euro and Greece are impacting the region.
On GST
Sitharaman declined to comment if a special session of the Parliament will be called to pass the Goods and Services Tax (GST) bill.
She blamed the Congress party for stalling the passage of several economic legislations.
“Can't the finance ministers of Congress-ruled states in the committee (headed by Congress leader) take care of the problems there? The same modus operandi is being used in GST as well as the Land Bill and others”, said Sitharaman, who was optimistic that GST Bill will pass.
“A drama inside the committee, another outside. Outside you give provocative statements and inside you do something else,” she alleged.
Congress is not able to digest the fact that BJP has got the people’s mandate to rule the country and that BJP's schemes have been well received in rural parts, said Sitharaman.
She said BJP would hold public meetings in the 44 Lok Sabha constituencies held by the Congress party to explain “anti-democratic stance” of Congress and how they are not letting the Parliament function.
Sitharaman also said similar meetings would be held in the six Lok Sabha constituencies held by the communist parties.
