"There is no doubt that China is responding to its own internal development of slowing down of growth and exports in order to give its economy a boost. All of us policymakers around the world, including India, have to take notice of this action," Arvind said.
    
Subramanian, however, refused to comment on the impact of yuan devaluation on India and its exports. China's central bank yesterday devalued its tightly controlled currency by close to 2 per cent to boost exports, amid a slowdown in the world's second-largest economy and the
recent stock market crash.
    
Even global exports are on a sliding path. This decline in global demand is putting pressure on the export-driven Chinese economy.

Subramanian said China, on the one hand, has devalued the currency and taken measures aimed at reducing the spread between onshore and offshore rates.
   
"This action is both an endeavour to make their yuan a more plausible credible candidate for inclusion in the SDR basket," he said.

 

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