India is involved with China in importing goods, pharmaceuticals, movable parts, and almost everything. But the recent outbreak of coronavirus has vastly affected this. This chain of dealing is almost distorted and thus is a significant issue for India.
According to a presentation by the Confederation of India Industries (CII), China is the source of $30 billion in goods per year. This pause in this channel has vastly affected India’s manufacturing and export of medicines, textiles, electronics, and chemicals.
The impact of coronavirus leads imbalance in trade and, thus, a considerable loss. In these concerns, Indian business leaders have demanded cuts on import duties as this is the only solution to retain their loss.
The confederation will show a presentation where Finance Minister Nirmala Sitharaman will discuss these issues with more than 200 business leaders. The main focus is to reduce the import duties on products imported from China. The fewer import duties will help the business leader to import products from other countries without any marginal loss.
The CII said that with the ongoing situations, the government might avail credit and guarantee to companies who carry the ability to produce the necessary items domestically. It will be a big step to fulfill the required consumption.
According to the figures, the threat of coronavirus is vast and killed more than 1,800 people in China. This situation has majorly affected industries and business leaders—India sources around 65-70% and around 90% active pharmaceutical ingredients and certain mobile parts, respectively.
According to Moody’s rating agency, this outbreak of coronavirus has affected every disciple like trade, tourism, supply chain disruptions, and others. Moody’s reduce the economic growth forecast of India from 6.6% to 5.4% for 2020, and the year 2021, the reduction is from 6.7% to 5.8%. These figures clearly illustrate the impact of the outbreak of coronavirus on industries, businesses, and hence the economy.
The Secretary-General of Indian Drug Manufacturers Association, namely Daara Patel, who represents over 900 drug producers, explains the devasting situation of this industry. The pharmaceutical industries are at a significant threat because the demand for raw material is high, but supplies, on the other hand, are low. The prices of some vitamins, antibiotics, other medicines have risen by 15-50%, and the amount is small. The stock availability is not enough to feed the domestic consumption.