File photo. Photograph:( AFP )
It has hit china's exports and disrupted global supply chains. India too is feeling the impact.
The deadly coronavirus which has already killed over 1000 people in China is impacting the world in more ways than one.
The global economy is already paying a price. According to one estimate, the coronavirus could shave 0.5 per cent off global growth.
It has hit China's exports and disrupted global supply chains. India too is feeling the impact.
China is the biggest trading partner of India. Around 14 per cent of Indian imports are Chinese.
Several Indian companies depend on China for their supplies; since the outbreak of coronavirus several industries in India are seeing the ripple effect.
So far the tourism industry is the worst hit by the coronavirus pandemic.
In 2019, more than 10 million foreign travellers visited India. Out of these over three per cent were Chinese; and since the coronavirus outbreak, governments around the world including India have banned flights to China including India.
According to a report, the temporary suspension to China and Hong Kong will dent the revenues of airlines.
They could lose around 55-72 lakhs with every cancelled flight.
The Indian film industry is bracing for losses as well.
In recent years, many Bollywood movies have been released in China and have become the highest-grossing films as well.
But now as China closed nearly 70 thousand theatres, film revenues are bound to be impacted severely.
China supplies around 50 to 60 per cent of India's electronic demands. Several companies depend on China for their parts.
Their supply has been disrupted by the shutdown.
The industry which is already facing a slowdown, the coronavirus outbreak is making the auto industry of India even worse.
Vehicle makers import raw materials and components from China.
According to one estimate, vehicle production in India could shrink by a little more than eight per cent this year, due to the coronavirus.
India is the world's largest exporter of generic drugs. But, Indian manufacturers depend on China for 70 per cent of the raw materials.
This includes key ingredients for antibiotics, diabetes drugs, painkillers and antiretrovirals for HIV.
The shutdown in supply could lead to shortage and prices of major drugs could shoot up.
The price for the key ingredient for paracetamol has doubled in the last ten days. If the trend continues, expect your medical bills to go up.