New Delhi (NVI) As the Chinese novel coronavirus epidemic spreads to a number of countries in the world, the global health concern has raised business anxieties, with a likely effect on exports and imports around the globe, including India.
Trade Finance firm Drip Capital believes that in the present case scenario the virus outbreak may have a snowball effect on Indian exports to China which have been growing in recent years.
“The country is among the top three countries India exports to. Indian exports to China grew 25.6% to $ 16.75 billion in FY 2018-19 from a year ago and were projected to grow around 4% for FY 2019-20. However, if the spread of the new Wuhan coronavirus 2019-nCoV forces a prolonged lockdown in China, retail consumption and raw material demand are expected to fall,” says Pushkar Mukewar, CO-CEO, Drip Capital.
Seafood exporters in Kerala are already feeling the pinch, and prices of commodities like soybean and cotton are also facing uncertainty, says the Finance firm Drip Capital CEO.
“China is a huge driver of international trade, and an extended lockdown of the country because of the outbreak is likely to cause trouble for exporters in India and elsewhere,” says Pushkar Mukewar.
However, the CEO hopes that this scare is short-lived and business returns to normal with flourishing trade in the long term.
