Hyderabad: China is not only India’s neighbour but also one of the major trading partners. So, what happens in China is a matter of importance for our country, especially for imports and exports.
The coronavirus, officially called COVID-19, is spreading like a wildfire casting shadow on India’s exports to China. The outbreak of the deadly virus forced China to put curbs on agriculture products.
Let us find out some of the major areas of concern for India.
Agriculture
Red chilli exports from Andhra Pradesh and Karnataka and cotton exports from Maharashtra to China halted.
On an average, a chilli farmer used to earn Rs 17,000 to 20,000 per quintal of produce. Now, due to the reduced demand from China, earning have drastically fallen to Rs 10,000 to 12,000 per quintal.
Similarly, China is a major cotton importing country for India. There are reports that cotton farmers in Maharashtra are worried about losing out on export potential.
Automobiles
As per an estimate, India meets about 10-30 per cent of its automotive components demand from China. Since Wuhan, the epicentre of the epidemic, is an automobile hub, there expect to be supply disruptions in the coming weeks and months.
Electronics
The consumer electronics companies and the mobile industry have not yet seen any adverse impact of the coronavirus outbreak in China.
Indian mobile industry imports an estimated Rs 95,000 crore worth of components annually, a portion of which comes from China.
It should be noted that Wuhan has a global role in electronics industry production of both subassemblies and finished goods for leading companies.
Pharmaceuticals
Indian pharma firms are closely monitoring the outbreak of coronavirus in China as it could impact the supply of active pharmaceutical ingredients in the country.
India imports bulk drugs (active pharmaceutical ingredients -APIs) for producing medicines including certain essential medicines from China.
China accounted for 67.56 per cent of total imports of bulk drugs and drug intermediates in 2018-19 at USD 2,405.42 million.
Aviation
Air transport services between both the countries are halted for now. Since the virus is taking its toll on China’s neighbouring countries, Indian airlines restricted its services to Hong Kong, Singapore, etc.
India temporarily suspended e-visa facility for Chinese travellers and foreigners residing in the neighbouring country.
Curbs on air services impacting movement of tourists and dependent hospitality industry in India.
