Coronavirus Could Dent Global Growth By USD 250 Billion: PHD Chamber

New Delhi: The spread of Coronavirus could dent global growth by USD 250 billion which translates into 0.3 percentage points. 

China has been able to increase its presence in the total imports of USA from mere 8.8 percent in 2001 to 21.7 percent in 2018. At the same time India increased its share in USA’s imports from only 0.7 percent to 2 percent in the same time period. 

China has also been able to increase its presence in the total imports of UAE from mere 7.3 percent in 2001 to 18 percent in 2018. On the other hand India’s share in UAE’s imports declined from 11 percent in 2001 to 7.3 percent in 2018.

Sectors such as iron and steel, pharmaceuticals and solar energy have been subject to disruptions in imports of various raw materials from China in the recent past, according to PHD Chamber of Commerce and Industry.  

“At this juncture, we need to boost our domestic consumption demand and domestic capacities to mitigate the likely impact of Coronavirus on global trade,” said Chamber President D K Aggarwal.

At this juncture, India must focus must on supply chain to its top 10 export markets like USA, UAE, Hong Kong, Singapore, UK, Germany, among others where China has also its major contribution.

“Going ahead, India should strengthen its supply chain to regain its lost market share as the country is moving up in terms of Ease of Doing Business and competitiveness of businesses along with market access opportunities,” said Aggarwal.

However, the fundamentals of the Indian economy remain strong and businesses will adjust consequently in the backdrop of robust economic reforms undertaken by the Government to create a strong and resilient economic environment in the country, he said.