Depreciating Rupee Could Help Tackle Potential Chinese Dumping: Saurabh Mukherjea

swift Summary:

• The article discusses the potential benefits of depreciating the Indian rupee as a measure to counter dumping practices by China.
• saurabh Mukherjea suggests that rupee depreciation could improve competitiveness for Indian manufacturers and help safeguard domestic industries against global imports, including Chinese goods.

Indian Opinion Analysis:
India faces complex trade dynamics with global partners, especially with China due to its large export footprint. Focused currency management like rupee depreciation could provide an economic buffer against predatory pricing strategies or high-volume dumping by external entities, as suggested in the article. However, while this strategy might bolster domestic production in the short term, policymakers would need to balance it carefully to avoid inflationary pressures and ensure its alignment with broader economic goals like fostering sustainable exports.

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