China has witnessed more than 70,000 coronavirus cases and more than 2400 deaths until now. The virus has spread in more than 30 countries, and the number of cases is rising. So far 3 reports of coronavirus were reported in India. Hopefully, all 3 of them were quarantined and safely recovered. To stop the breakthrough of this epidemic virus, India had already halted the process of Visa to China, and travel ban got imposed. Amid the virus outbreak, Indian manufacturing hub is also affected now. According to the Confederation of Indian Industry (CII), India is dependent on about 45% of total electronics imports from China.
The supply of raw materials for the production of TV, AC, mobile phones and other gadgets are gradually decreasing. Therefore due to a shortage of equipment, the manufacturers are likely to raise prices for these items. Several companies that rely on Chinese materials are already cutting down promotional offers. Companies like Voltas, Whirlpool, Havells can increase the costs of gadgets like TV can increase by up to 4-6%.
Moreover, the aviation, tourism sector is likely to witness downfall from March. Due to the china virus outbreak, the global economy is badly hit. Its also evident that when most of the global markets witness slowdown, almost every country gets affected. Other significant sectors like automobiles, pharmaceuticals are also going to miscued in India.
Till now the virus is uncontrollable, and several cases are rising every day. If the epidemic continues for a longer time, Indian petrochemical export to china will also get hit. Currently, India exports around 34% of petrochemicals to a neighboring country like China. Talking about small business people in China, they have been affected the most by this epidemic. Talking about official figures, the retail inflation in China was 5.4 per cent last month.
Major cities of China like Wuhan, Hubei and Hong Kong are under lockdown. These cities are the hub for the manufacturing, and the global economy depends on it. India is to observe a significant negative impact on imports and shipping in different industries. Surprisingly most prominent exports in India is dependent on China. In the year 2018, China shipped assets worth $90.4bn to and valued for 14.63% of the commodities in India.