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Indian pharma industry imports about ₹17,000 crore worth of active pharmaceutical ingredients from China.
India imports mobile phone components worth ₹7,000-8,000 crore from China every month and the break might can impact the mobile prices
At present India is the second-largest producer of steel with an annual output of over 106 million tonnes after China which accounts for 928 MT.
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As China remains under the throes of Coronavirus, a long list of countries that import from it will face shortages. India is one of them. Finance Minister Nirmala Sitharaman is meeting with industry and trade associations to assess the impact of the virus on businesses.
Pharmaceuticals, mobile phones, auto parts are the top industries that import raw materials from China.
Indian auto industry, which is already troubled by the slowdown, is concerned about how the virus will affect their production. It is sceptical about the coronavirus outbreak disrupting auto component supplies from China. But a clear picture will emerge only in the next few days after the offices and factories in the country re-open.
“The ongoing issue of coronavirus in China has affected the supply of some components to our manufacturing facilities in India. This is likely to impact our planned production by around 10%
Steel Industry
credit: Reuters
At present India is the second-largest producer of steel with an annual output of over 106 million tonnes after China which accounts for 928 MT. The coronavirus outbreak can cause global steel crisis and the impact can last for 2-3 years, said Union Minister Dharmendra Pradhan.
A Reuters report mentioned that 90% of China’s ports that ship the raw material are located in regions impacted by the virus. “Apart from the impact on steel prices, the other problem could be in the supply of spare parts for the steel sector. Much of the spare parts come from China,” a senior executive from one of the Indian steel companies told Moneycontrol.
Airlifting raw material for pharma industry
Indian pharma industry imports about ₹17,000 crore worth of active pharmaceutical ingredients from China every month. There are worries that as shortage builds, these prices will go up. During the meeting with Sithraman, pharma companies requested the government to consider airlifting of API supplies from China, in order to avoid shortages.
“There are no concerns about price rise (of medicines) so far. There is no report of shortage of masks and medicines in Indian hospitals. In fact, there was a demand from those who manufacture medical devices to remove the ban on exports,” Sitharaman said on the impact of coronavirus.
Mobile industry braces for price hikes
The spread of the deadly coronavirus has rattled the mobile industry in India. Be it Apple or Vivo— almost all brands have manufacturing units in China. India imports mobile phone components worth ₹7,000-8,000 crore from China every month and a break in imports might affect the prices of phones in the country.
Coronavirus has had a sharp impact on productivity, as offices and factories across China halted operations after the outbreak.