Can India Remain Safe For Long From Pandemic Coronavirus
The first case of coronavirus in India was reported on 31st January 2020 in the state of Kerala. 3 cases were reported during the same time period and all of them were recovered soon. The next set of people who was tested positive for the virus was growing day by day tremendously. Our nation was comparatively unscathed for a certain time period, but it has finally turned out to be a dreadful situation now.
As of now, there are 148 positive cases in India with Maharashtra at the top with 42 confirmed cases of coronavirus. This horrendous situation has inculcated fear for each resident in the country.
People had a belief about India’s relative safety, but with this growing positive cases day by day, it seems to be quickly losing steam. When it comes to India joining the Great Asian Supply Chain with China as its base, it has long been one step forward, two steps back for India. This aided India for limiting the damage caused by coronavirus which has brought industries in many countries across the globe to a standstill.
Nomura economist Robert Subbaraman says that India does not have powerful links with China in respect of visitor arrivals compared to other Asian countries and also the economic spill-overs arising from China to India is also not strong.
The virus has already impacted the exports and manufacturing sectors of India especially textiles, electronics, medicines etc. To protect the Indian industry from this risk, Government has taken necessary actions, notably in the intermediate goods area.
India’s growth rate slowed to a 7-year low of 4.7% during October-December 2019 and now it is facing the biggest challenge of coronavirus which can adversely impact the tourism and trade sector.
Australia, which is the most China-reliant economy is staggering from shockwaves and has raised questions as to whether the country is highly reliant on the Asian behemoth.
As per Nomura economist Sonal Verma, two things have to be keenly observed from the viewpoint of India i.e. the sectors where India is dependent on China for imports and the negative demand impact could be simply an issue of time for India in case the world economy slows due to China.