New Delhi (NVI): India can increase its export shipments to the global market and fill up the space vacated by China due to the outbreak of Coronavirus, according to an ASSOCHAM analysis.
China’s economy, the second largest in the world, has been severely impaired due to the novel coronavirus.
Although, India’s exporters of electronics, pharmaceuticals, speciality chemicals and to an extent automobile depend on China for raw material and are facing supply constraints, but there are several areas where there are increased opportunities as well, according to ASSOCHAM.
“A large number of engineering exports from India can fill up the market vacated by China; so is the case with products like leather and leather goods. Besides, there are several agri-related products and highly employment-intensive sectors like carpets which can be ramped up to meet the global shortfalls caused due to disruptions in China,” ASSOCHAM secretary general, Deepak Sood said.
“We also need to scale up several of our sectors to compete effectively with China even when the Chinese exporters are able to normalise their global supply chain,” Deepak Sood added.
He added that while the health emergency of the scale of Coronavirus, which has been placed in the category of ‘Very High’ risk by the World Health Organisation (WHO), is a matter of grave concern for the entire world, “it is incumbent on larger economies like India to fill up the gaps in the global market of merchandise and we need to approach the issue with a clear strategy.”
According to the latest PMI (Purchase Managers’ Index), China’s factory output in February, has plummeted to levels which are the worst in the past two decades and; the consequences are bound to be felt in the global market.
The ASSOCHAM analysis found that while India’s merchandise exports have contracted by 1.93 per cent between April-January period of the current fiscal year, the coming few months can provide our exporters greater market access in the absence of usually aggressive and competitive Chinese suppliers.
“However, since some of our export segments like pharmaceuticals do get impacted due to raw material shortage, advantage in other segments will not accrue in an auto-mode. It has to be acquired by a strategy; and the good thing is that the Commerce and Industry Ministry is seized of the issue and would be engaged with the exporters to assess the ground situation,” the ASSOCHAM secretary general further said.
