Sat. Nov 28th, 2020

How Coronavirus Impact on Indian Economy

How Coronavirus Impact on Indian Economy

How Coronavirus Impact on Indian Economy

Corona Virus – Basic Details

With the total count of deaths from CoronaVirus Disease (COVID-19) crossing the mark of 3000 worldwide on 3rd March 2020, this malady is swiftly spreading its wings across all the nations. A large majority of countries including India are on the high alert. New cases are being reported every other day. The first appearance of the life-threatening Coronavirus (CoV) took place in the Wuhan city of China on 31st December 2019. But, now it has attained the status of an epidemic. 

Before understanding the solemn consequences of Coronavirus, it is extremely essential to be aware of its elementary characteristics. It is an enormous group of viruses that brings about an infection. Its symptoms vary from the common flu to more grievous ones such as SARS-CoV (Severe Acute Respiratory Syndrome) and MERS-CoV (Middle East Respiratory Syndrome). The Novel Coronavirus is the latest variety of virus infection that has been detected in humans up to now.

World Health Organization (WHO) is working in close alliance with the governments, global authorities, medical experts, and other health establishments to deliver cautionary advice to the various countries regarding preventive measures. There is no iota of doubt about the certainty that the occurrence of COVID-19 would significantly exert influence on the Indian Economy in the form of supply-chain disruption, trade loss, economic slowdown, price rise, and impediment in logistics. 

Coronavirus Impact on India’s Import 

The Indian economy would be affected by the breakout of this deadly disease. As far as imports are concerned, India depends on the Chinese economy to a large extent. Out of the 20 leading commodities that are imported into India from the different countries across the world, China’s contribution is a significant one. China’s share in the total imports of these articles into the country is as follows:

  • Mobile Handsets – Around 90% 
  • Active Pharmaceutical Ingredients – 65-70%
  • Electronic Products – 45%
  • Organic Chemicals – 37%
  • Pharmaceutical Products – 36%
  • Dyes – 28%
  • Automotive Components – More than 25%
  • Fertilizers – More than 25%
  • Inorganic Chemicals – 13%

Export Situation

Likewise, in the matter of export, the contribution of the Chinese Economy is also of considerable size. China is the third-largest export ally of India and receives about 5% of the total export. The adverse impact of this widespread epidemic might be witnessed in these sectors: 

  • Organic Chemicals 
  • Plastic 
  • Fish Products 
  • Cotton 
  • Natural Ores

A large number of Indian multinational companies are also situated in China. Around 72% of the Indian multinational corporate are positioned in cities such as Beijing, Guangdong, Shanghai, Shandong, and Jiangsu. These companies operate in diverse sectors like:

  • Manufacturing services
  • Industrial manufacturing
  • Business Process Outsourcing (BPO)
  • Information Technology (IT)
  • Chemicals
  • Logistics Company
  • Tourism
  • Aviation

Impact on Other Indian Sectors

Some other industries that have been affected unfavorably by the sudden occurrence of Coronavirus are namely:

  • Shipping
  • Automobiles
  • Electronic 
  • Pharmaceuticals
  • Mobile Phones
  • Textiles 
  • Solar Power,
  • Information Technology 
  • Aviation
  • Tourism

The supply-chain associated with markets and industries might also get hampered due to the outburst of this fatal affliction. On the whole, the influence of Coronavirus on the Indian market is at a moderate level currently.