coronavirus not only affects human lives, but also the whole word stock market. WHO (World Health Organization) still doesn’t consider this outbreak as a pandemic. It is estimated that 40-70% population of the world population would be infected by this virus. Recent Report says that it has killed 3,169 people killed in China. In India infections comparatively less as per other countries.
It’s difficult to predict what will be the consequences of the coronavirus. As china shares 19.25 per share of global GDP. That means disturbance in the supply chain of manufacturing components it will affect the whole global market.
In this section, we will see how India dependent on China. Indian Pharma medicines are wholly dependent on the china imports of pharma medicines. China is the world’s second-largest market for electronic gadgets.
75% of manufacturing components required for smartphones has imported from China.
As we all know India is a rich source of Natural Resources. But still can’t convert solar energy into electricity without the Chinese grid. You can’t even charge your mobile without a Chinese charger. This is how it shows the dependency of India on China. Due to the outbreak of the coronavirus import of goods from china it has totally stopped.
Apart from these other sectors such as toys, furniture, computers, smartphones, cars are dependent on China. Particularly In India 40% of GDP Shared by the Automobile Industry. Recession in automobile affects the GDP of India also.
China is a world factory for Electronic Gadgets. China Makes 90% of the world’s computers,70% smartphones, and 80% of AC Imported Globally. 70% of bill materials for smartphones imported from china.
China’s trading partners like the USA, Hong Kong, Japan, South Korea, Vietnam, Germany, and India. Because of coronavirus Many companies in China shutdown. Automobile Industry is in recession period because of the most manufactured goods imported from China. As china’s Economy slips do the world economy also slips down. We are facing the same recession period as 2008.
As we can see this virus affects the whole world’s economy. Then how India will get benefit in this recession period.
As the global market is looking for an alternative option that can replace china so India needs to grab this opportunity. China already resumed the work for importing business. So for India it will be a better opportunity to take this place. India is having a chance to increase its production capacity,to expand the export market. As well India is the land of skilled laborers so they can accelerate the manufacturing activity. It will help India to create more Job Opportunities. Because of this dependency on china in the global market it will directly be decreased. Even the investment from the Chinese companies helps them to boost them to improve the ecosystem.