Indian macroeconomic outlook vulnerable to disruption of trade with China: FM on COVID-19

PTI, Mar 16, 2020, 4:45 PM IST

New Delhi: The government on Monday said India’s near-term macroeconomic outlook is vulnerable to disruption of trade with China due to the coronavirus outbreak but the latest data do not suggest any adverse impact on the economy, and sliding crude oil prices may be a silver lining.

The coronavirus outbreak, first in China and now having been confirmed in more than 100 countries, has emerged as a key risk to human health as well as global growth outlook through numerous channels like trade, production and supply chain disruptions as well as a decline in demand.

This was stated by Minister of State for Finance Anurag Thakur in a written reply to a question in the Lok Sabha.

“As is true for the world at large, India’s near-term macroeconomic outlook is also vulnerable to disruption of trade with China and second-round effects arising from an expected slowdown in global growth,” he said.

However, the latest available data on trade and domestic output indicators do not suggest any adverse impact on the economy, the minister said.

“Additionally, a positive impact on India’s economy may arise from a decline in global oil prices triggered by the outbreak of COVID-19,” Thakur added.

He told the House that the Ministry of Health and Family Welfare has been coordinating the efforts of the central government in terms of preparedness, control and containment measures and working with state governments in order to mitigate the impact of the virus outbreak in India.

In order to address the possibility of trade-induced adverse impact on the economy, the government is constantly engaging with export promotion councils and trade bodies, particularly in pharmaceutical, electronics and automobile sectors where the supply chains are sourcing imports from China.

These agencies, Thakur said, have been put in touch with Indian Missions abroad to secure and transport inventories available with the existing suppliers.

Indian Missions abroad have also been asked to explore alternative sources of supply of raw materials in their respective countries for supporting India’s domestic production.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Mangaluru: 2 arrested for peddling ganja at Moodushedde

Delhi Metro launches WhatsApp-based ticketing service on Airport Line

Karnataka govt enhances DA for its employees from 31% to 35%

Curious case of Saha’s WTC Final omission baffles many

No water supply for 2 days in select areas of Mangaluru from June 2

Gurugram woman duped of Rs 1.8 crore by Nigerian ‘friend’

Maharashtra farmers to get Rs 6,000 a year under new scheme approved by Cabinet

Related Articles More

Sebi cancels Siddhi Vinayak Commodities’ registration in NSEL case

RBI working on light weight, portable payment system for critical transactions during catastrophic events

India’s growth momentum likely to be sustained in 2023-24: RBI

Markets jump in early trade, Sensex reclaims 63,000-mark

Global trends, macroeconomic data to drive equity markets this week: Analysts


Tribe people in brhills

An accident between cars on National Highway 66, four injured

Natana Rangashaale | Udayavani

Jagadish shettar defeated Basavaraj bommai in 1994

Vinaya Kumar Sorake submission of nomination papers-Kapu

Latest Additions

Mangaluru: 2 arrested for peddling ganja at Moodushedde

Will do a film when emotionally ready: Aamir Khan

NCERT drops references to Khalistan demand from class 12 political science textbook

Can’t force citizen to choose between education and reproductive autonomy, says Delhi HC

Worst cyberattack in Greece disrupts high school exams, causes political spat