Developments in Taiwan won’t impact India: RBI Guv
Reserve Bank Governor Shaktikanta Das said Friday that India is unlikely to be affected by adverse developments in Taiwan.
The governor said Taiwan accounts for only 0.7% of India’s overall trade and capital flows from the island are also not very high.
This week has been marked by rising tensions between Taiwan and China, sparked by the visit of US House Speaker Nancy Pelosi to the island nation that Beijing considers a breakaway province. A belligerent China has tested missiles and sent 100 warplanes and 10 warships for live-fire military drills in nearby Taiwan.
“…when it comes to India, you know, our trade with Taiwan is miniscule. It’s about 0.7% of our total trade. So the impact on India is expected to be very, very , very negligible,” Das told reporters here.
He added that capital flows from Taiwan in terms of foreign direct investment (FDI) and other instruments are also very low.
“So India will not really be affected by what is happening or what is likely to happen in Taiwan,” he said.
Asked about developments in Sri Lanka, Das said all discussions would be led by governments.
The RBI only studies economic developments with regard to the ramification on the Indian economy, he added.