India not to Join Global Chorus on Yuan Appreciation.

TOKYO: India, mindful of its import dependency, is unlikely to join the global rhetoric urging China to let its currency appreciate. India depends on cheap project imports from China to jump-start its big-ticket infrastructure projects, especially in power.

Disclosing this ahead of a meeting scheduled between Prime Minister Manmohan Singh and Chinese premier Wen Jiabao, a source said the currency issue would have to be dealt within the larger context of growth. “We don’t want drastic solutions that would imperil growth,” he said.

On his part, Mr Singh is expected to put pressure on the Chinese to lower import barriers, both tariff and non-tariff, especially with respect to pharmaceutical imports from India. China is India’s biggest trading partner and enjoys a huge trade surplus, implying that a cheaper yuan will lower India’s import bill.

Source : economictimes.indiatimes.com