Coronavirus impacts the Indian economy
As China battles the Coronavirus, India too has braced up to prevent the outbreak. But the epidemic in China has started showing it’s impact on the Indian economy
As China battles the Coronavirus, India too has braced up to prevent the outbreak.
But the epidemic in China has started showing it's impact on the Indian economy.
There has been a decline in India's imports as China struggles to contain coronavirus.
Many small scale industry, electronics etc are heavily dependent on imports from China.
Meanwhile many global companies are turning to Indian sellers for their requirements.
This can result in trade deficit led by decline imports, decline in oil prices and surprise increase in exports.
This prolong trend may even hurt our economy as we still have large capital expenditure requirements.
Majority of these requirements are fulfilled through imports from China.
The biggest fallout of coronavirus impact would be on electronics and allied equipments supply.
As the world is finding answers for China manufacture slump , India is nowhere to grab same due to utter slow economy.
Vietnam,Taipei,Bangladesh might get maximum share of this downturn.
Smartphone and consumer electronics companies in India are getting badly impacted...as the coronavirus outbreak in China has disrupted component supplies.
Indian companies have to delay their product launches and sharply cut the production costs.
The scale of the impact would depend on how long the disruption continues.
China accounts for 75% of total value of components used in TVs and 85% in case of smartphones.
Components like mobile displays,TV panels, circuit boards, capacitors and LED chips are imported from China.
Air conditioner compressors and washing machine motors are also among sourced from that country.
Chinese vendors have hiked component prices by 2-3% due to supply shortages triggered by factory shutdowns.
This could rise further unless the situation improves in the next few days.