Finance minister Pranab Mukherjee said that China?s decision to make its currency yuan more flexible will help the world economy. ?I would hope that China would address the problems in its proper perspective and what they have announced, they mean it, and they would adopt flexibility, which will help the world economy,? he told reporters in Washington.

Addressing an interactive session organised by the Confederation of Indian Industry on the eve of the crucial meeting of the Indo-US CEOs Forum, he said: ?In our bilateral relationship, it (de-pegging of yuan) is not going to have a major impact. But I do believe, as a major player in economic arena, that China should take note of the concern of the world economy and have the flexible (currency).?

Earlier in the day, the White House said it would be monitoring progress on the Chinese assurance that it would be making its currency more flexible. It also said that currency, indeed, would be one of the topics of discussions during the upcoming G-20 Summit in Toronto, Canada. Mukherjee, finance minister of Asia?s third-largest economy, hoped US companies would invest in India?s infrastructure sector to bridge the funding gap in this crucial area. At separate meetings with the industry shortly after his arrival here on Monday, he pointed to the potential funding gap of 25-30% ?which needs to bridged through innovative modes of financing.?

Mukherjee was quoted in a statement issued by the finance ministry in New Delhi as saying that there was scope for investing $850 billion in India?s infrastructure sector, which would go up to $2.7 trillion in the next five years.

?There are some big, bold recommendations, that are going to take courage on both sides,? said Ron Somers, president of the US-India Business Council (USIBC). ?On the Indian side, we are hopeful that the Monsoon (session of) Parliament can open the education sector for foreign investment and lift the FDI cap in insurance,? said Somers. Dow Chemicals chairman & CEO Andrew Liveris did not attend the CEO Business Forum. An Indian delegation led by Mukherjee, and including commerce minister Anand Sharma, Planning Commission deputy chairman Montek Singh Ahluwalia and top corporate leaders are attending the meeting.

A Dow spokesperson claimed that Liveris? absence has nothing to do with the ongoing Bhopal controversy. ?Absolutely not and in no way related (to Bhopal controversy) as to why he cannot attend the meeting; he already had a commitment that he could not move for this meeting; otherwise he would be there,? the spokesman added.

The Indo-US CEOs Forum, which was reconstituted on the eve of Prime Minister Manmohan Singh?s State visit to Washington last year, is having its second meeting in its first year.

Mukherjee said the Forum will get the opportunity to review identified areas where deficiencies exist and make improvements. Top officials from the Obama administration including Secretary of State Hillary Clinton are expected to attend the meeting to be held at the State Department.

Addressing a separate gathering of senior finance executives at the Institute of International Finance in Washington, Mukherjee said India faces three challenges: fiscal consolidation, high inflation and oil prices. Provisional headline inflation for May is in double-digit levels. Mukherjee expressed hope that once it becomes clear that monsoon is normal, inflationary pressure would start easing from mid-July.

Mukherjee added that a lingering debt crisis in the euro zone could disrupt trade and lead to flight of capital from emerging markets like India and end up derailing the fragile global economic recovery. ?It has the potential to disrupt trade and lead to financial contagion,? Mukherjee said.