Reserve Bank Governor Shaktikanta Das on Friday said that India is unlikely to be affected by any adverse developments in Taiwan.
The Governor said that Taiwan’s share in India’s total trade is only 0.7 percent and capital flows from the island are also not very high.
This week saw escalating tensions between Taiwan and China, triggered by US House Speaker Nancy Pelosi’s visit to the island nation, which Beijing views as a separate province. A belligerent China has tested missiles and sent 100 warplanes and 10 warships to live-fire military exercises in the region near Taiwan.
“… as far as India is concerned, you know, we have very little trade with Taiwan. It’s about 0.7 percent of our total trade. So the impact on India is expected to be very, very, very negligible ,” said Mr. Das told reporters here.
He said capital inflows from Taiwan are also very low in terms of foreign direct investment (FDI) and other instruments.
“So, so India is not really going to be affected with respect to what is happening or is likely to happen in Taiwan,” he said.
Asked about developments in Sri Lanka, Mr Das said any discussion would be taken up by the governments.
He said that RBI studies economic development only in relation to its impact on the Indian economy.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)