Indian exporters to gain from flexible yuan

India's exporters will benefit from China's decision to make its currency, yuan, more flexible, the Confederation of Indian Industries said in New Delhi on Tuesday.

"We expect our exporters to benefit from such a move (yuan appreciation)," CII Director General Chandrajit Banerjee has been quoted by a news agency.

According to him, as reported by the news agency, Indian exporters will be able to give competition to their Chinese rivals in the global market if yuan appreciates in sync with the strength of China's economy.

He pointed out that India's exports of textile, gems and jewellery, handicrafts and leather, which directly competes with the Chinese consignments in the western markets will gain from the decision by the Chinese government.

The CII chief said the extent to which the domestic industry benefits would depend on the degree of the rise of yuan, which soared Tuesday to its highest level against dollar since July 2005 when it was revalued.

Finance Minister Pranab Mukherjee had said in Washington on Monday that China's decision to make yuan more flexible will help the world economy.