China’s economic slowdown is hurting India, Reserve Bank of India Gov. Raghuram Rajan said in a newspaper interview published this weekend.
“There is a lower demand for some of our exports to China,” Mr. Rajan told the South China Morning Post.
“But indirectly, too, many of the countries are not exporting to China as much as they did and they are buying less from us,” he said in the interview with the Hong Kong-based daily.
A spokesperson for the RBI confirmed that Gov. Rajan had made the comments.
After two decades of break neck growth, China’s economy has been cooling as the country’s industries churn out fewer goods for export.
Beijing is also rebalancing its economy in an attempt to make it more stable by shifting toward consumption, a less-volatile component of gross domestic product.
Many Asian countries that rely on strong growth in China to provide a market for their finished goods or raw materials have been heavily affected by the Chinese slowdown. Others, to varying degrees, are benefiting from lower raw material prices.
Indian Finance Minister Arun Jaitley has recently said that China’s economic troubles may prove a boon for his country.
Mr. Jaitley said India has stood up well to the sharp economic slowdown in China, in part because it isn’t part of the Chinese supply chain.
In coming years, Mr. Jaitley has said, India will replace China as the engine of global growth.