The impact of Corona Virus spread in China has started looming on Indian industry. If the supply of raw materials from China is not smooth soon, many industrial sectors are expecting a shortage of raw materials. This will adversely affect both exports and domestic industry.
China is also a big market for the export of Indian goods. Many industrial organizations have demanded the Government of India to take alternative measures to save industries.
Industrial units have been closed for the past many days in China following the Corona outbreak. These units were announced to be opened by China from February 17th , but now they are being said to be opened from February 25th .
Corona Virus will reduce India’s exports:
As such, it is also seen as an accurate opportunity to develop India’s industries compared to China. But at the moment, Corona has started to sicken the industry business. Sharad Kumar Saraf, President of the Federation of Indian Export Organizations (FIEO) says, “It is difficult to say right now how much India’s exports will be reduced due to the Corona Virus, but it is certain that the effect will be seen.”
Due to dependence on China, there has been a shortage of raw materials:
He said that in the month of January also, exports of goods registered a decline of 1.6 percent as compared to January of the previous year. China’s Corona Virus was also involved in this decline. “There is a shortage of raw materials for the manufacture of leather products and to a large extent we depend on China for raw materials,” says Rafiq Ahmed, former president and leather exporter.
Many items like nylon are not available in the market:
SC Ralhan, an exporter of engineering goods and former chairman of a reputed company says, “There is a shortage of raw materials coming from China. Many items like nylon are not available in the market.”
Adverse effects on trade and small-scale industries:
BC Bhartia, National President of the Confederation of All India Traders (CAT), says that the Corona Virus has started showing adverse effects on the country’s trade and small-scale industry. He said that China is the largest exporter to India. Under the current circumstances the government needs to take immediate measures to maintain the supply chain. Normally importers keep stock of goods as buffer stock for two months and now stock is on the verge of extinction.
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