The trade impact of the coronavirus epidemic for India is estimated to be about 348 million dollars and the country figures among the top 15 economies most affected as slowdown of manufacturing in China disrupts world trade, according to a UN report.
Estimates published byUN Conference on Trade and Development (UNCTAD) on Wednesday said the slowdown of manufacturing in China due to the coronavirus (COVID-19) outbreak is disrupting world trade and could result in a 50 billion dollar decrease in exports across global value chains.
The most affected sectors include precision instruments, machinery, automotive and communication equipment.
Among the most-affected economies are the European Union (15.6 billion dollars ), the United States 5.8 billion dollars ), Japan 5.2 billion dollars ), South Korea 3.8 billion dollars), Taiwan 2.6 billion dollars ) and Vietnam 2.3 billion dollars).
India is among the 15 most-affected economies due to the epidemic and slowdown in production in China, with a trade impact of 348 million dollars.
The trade impact for India is less as compared to other economies such as EU, the US, Japan and South Korea. Trade impact for Indonesia is 312 million dollars.
For India, the trade impact is estimated to be the most for the chemicals sector at 129 million dollars, textiles and apparel at 64 million dollars, automotive sector at 34 million dollars, electrical machinery at 12 million dollars, leather products at 13 million dollars, metals and metal products at 27 million dollars and wood products and furniture at 15 million dollars.
'Besides its worrying effects on human life, the novel strain of coronavirus (COVID-19) has the potential to significantly slow down not only the Chinese economy but also the global economy. China has become the central manufacturing hub of many global business operations. Any disruption of China’s output is expected to have repercussions elsewhere through regional and global value chains,' UNCTAD said.
Over the last month, China has seen a dramatic reduction in its manufacturing Purchasing Manager’s Index (PMI) to 37.5, its lowest reading since 2004.
This drop implies a 2 per cent reduction in output on an annual basis. This has come as a direct consequence of the spread of corona virus (COVID-19).