Devaluation Of Chinese Yuan To Hit Punjab Exports: CICU

Ludhiana, August 13, 2015: Sh.Avtar Singh, President, Chamber of Industrial and Commercial Undertakings (CICU), Ludhiana in a statement released today said that for Punjab, whose exports has been declining, this depreciation in Yuan will further adversely impact exports from Punjab.  This will be especially true for Engineering, Textiles, Hosiery and Bicycles Industry.  Exports from Punjab which are on a declining trend will make the environment even more hostile.  A more competitive market would not just mean that Punjab exports to other countries could go down, but that Chinese Imports to Punjab could be set to increase.

Shri Upkar Singh Ahuja, General Secretary, CICU said that Indian Rupee is variable as per market conditions whereas Yuan is a stable currency.  China devalued its currency for the 3rd consecutive day by almost 1.11 percentage, totaling 3.11 percent versus US Dollar, raising fresh questions about the health of world’s 2nd largest economy.  This volatility in the normally stable currency will be impacting global Trade flows.  This will also affect investment flow to the country.

CICU request and urge upon the Union Government to take necessary measures to boost exports since old exports led growth model may not work in today’s world.  CICU demands the Union Government to introduce zero Income Tax on Exports for the next 5 years as was prevalent in 1992 when the rupee fell from 19 to 26 against US$.  India should be made an attractive destination for exporters that could yoke the Indian economy to a booming global one.