Coronavirus impact: Time for India to explore alternate supply chain destinations, says USISPF CEO

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Published: March 20, 2020 11:29 AM

According to a report released by the United Nations Conference on Trade and Development (UNCTAD), the impact of the coronavirus epidemic on trade for India is expected to be about $348 million.

Coronavirus, Coronavirus India, coronavirus risk in India, chances of coronavirus spreading to India, study on coronavirus risk, Coronavirus latest updates, Coronavirus outbreak, n95 mask, wuhan university, sars, nipah virus, n95 respirator mask, kerala virus, karona, carona, Coronavirus symptoms, Coronavirus treatment, Coronavirus medicine, Coronavirus prevention, coronavirus treatment breakthrough, coronavirus treatment, coronavirus narendra modi statement, PM Modi on coronavirus, PM Modi holi coronavirus, coronavirus all you need to know, coronavirus india, corona updates, corona alert india, coronavirus impact, coronavirus impact on economy, coronavirus impact on Indian economyThe slowdown in the manufacturing in China is due to the coronavirus (COVID-19) outbreak which has impacted the world trade. (Image: Reuters)

The impact of coronavirus on businesses will likely be felt for many months ahead— particularly as global supply chains, manufacturing hubs, and workforce mobility face disruptions says a top official of US-India Strategic Partnership Forum (USISPF). Sharing his views with Financial Express Online, Dr Mukesh Aghi, CEO & President USISPF says, “We commend the Government of India is leading the way towards a coordinated effort between SAARC countries to combat the crisis, placing essential items such as masks and sanitizers under essential commodities. India has shown that it can assume leadership in the region and bolster diplomatic ties during a time of crisis.”

“The impact of coronavirus on businesses will likely be felt for many months ahead— particularly as global supply chains, manufacturing hubs, and workforce mobility face disruptions. This is an opportunity for India to adopt a ‘China plus one’ model. This can make India less prone to future vulnerabilities as well.”

“On a related note, in 2018-19, the United States is India’s top goods trade partner, it is no longer China. India remains the United States’ ninth-largest goods trade partner. Despite long-standing trade issues, the growth trajectory of US-India goods trade has largely remained on a positive trajectory. Total bilateral trade in goods grew almost 5% to $92 billion in 2019, with $34 billion worth U.S. exports to India and approximately $58 billion imports from India,” Dr Aghi adds.

What does United Nations say?

According to a report released by the United Nations Conference on Trade and Development (UNCTAD), the impact of the coronavirus epidemic on trade for India is expected to be about $348 million.

The report which was released earlier this month at the UN has stated that India is among the top 15 economies which are affected due to the slowdown of manufacturing in China which has disrupted the world trade.

The slowdown in the manufacturing in China is due to the coronavirus (COVID-19) outbreak which has impacted the world trade and there could be a $50 billion decrease in exports across global value chains.

Globally the sectors which are expected to get affected include precision instruments, machinery, automotive and communication equipment.

For India, sectors that could get impacted include chemicals, textiles and apparel, automotive, electrical machinery, leather products, metals and metal products and wood products and furniture.

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