Devaluation of Yuan - Chinese Currency

This paper talks about the recent devaluation of the Chinese Yuan and its impact upon the Indian economy. Since second world war in 1939 when perforce Chinese economy was thrown open to the world after dethroning of the Dowager Empire, the Chinese dragon has emerged as the most powerful Communist Force in the Southeast Asian economy. This paper explores the impact of the cheaper Chinese exports on Balance and Payment of Indian economy. It discusses the various reasons for the slump in the markets because of the devaluation of yuan. In the wake of the rapid industrialization that took place in 1991, the Indian economy has emerged very very resilient and insulated to all kinds of global shocks. This paper discusses the emergence of the new arbitrage opportunities and its impact upon on the Indian economy