Yuan Depreciation and Its Impact

It is long time debate that China's Yuan is overvalued and should be corrected. There is a little doubt about the one of the reasons for the devaluation of the Chinese currency, Yuan, to improve the pace of slowed growth rate of its economy by encouraging export market for Chinese market. China's Central Bank (Peoples’ Bank of China) use currency devaluation tool for the very same purpose. The export data 0f China is falling continuously during last one year, month-on-month. It has many impacts on the small economies in particular and world economy in general. This paper analyses the impact of Yuan devaluation on Indian economy and different industries and sectors of Indian economy. Indian export-export business and resulting the trade deficit of the economy is discussed hereafter.