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If you stay indoors right now, you are fighting the battle for your country: Pujara        Lockdown challenge: Rai builds muscles to maintain shape for third Olympics        Avolon cancels order for 75 Boeing 737 MAX planes        Stocks fall on Wall Street, heading for another weekly loss        Trump recommends Americans wear face masks, but says he won't        Indonesia covers up to protect orangutans from virus threat        Bangladesh sees highest single-day jump in coronavirus cases, extends shutdown to Apr 11        EC postpones elections to 11 UP Legislative Council seats amid lockdown        Coronavirus: No community transmission in Goa, says CM        Madhya Pradesh: Two senior health officials test positive for Covid-19        COVID-19 death toll nears 100-mark; Govt says no need to panic as 30% infections linked to Tablighi centre        Kerala has been successful in containing outbreak of COVID-19, claims CM        Elderly couple cured of COVID-19, says Kerala CM        COVID-19 death toll in country rises to 62, cases to 2,547        43 more test positive for virus in Mumbai; death toll 19        COVID-19 cases in Delhi mounts to 386; two more deaths: Authorities        COVID-19: Focus shifts to rapid tests in hotspots; Govt says numbers in control sans one ''event''        Rupee slides 53 paise to settle above 76 mark amid meltdown in equities        India-returned SA players are COVID-19 negative, no symptoms in those not tested        No alternative to constant testing to combat COVID-19: Sonia        
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Business News
Coronavirus outbreak to hit global growth; to have limited impact on India: RBI Guv
 
New Delhi, Feb 19 (PTI) The coronavirus outbreak will have a limited impact on India but the global GDP and trade will definitely get affected due to the large size of the Chinese economy, RBI Governor Shaktikanta Das has said.

Only a couple of sectors in India are likely to see some disruptions but alternatives are being explored to overcome those issues, he said.

The deadly virus has brought a large part of the world's second-largest economy China to a standstill and its impact has been felt across industries.

India's pharmaceutical and electronic manufacturing sectors are dependent on China for inputs and they may be impacted, Das told PTI in an interview here.

"It is definitely an issue which needs to be closely monitored by every policymaker whether in India or any other country. Every policymaker, every monetary authority needs to keep a very close watch. So coronavirus issue needs to be closely watched," he said.

A similar problem, perhaps on a lower scale, occurred last time during the outbreak of Severe Acute Respiratory Syndrome (SARS) in 2003, he said adding that the Chinese economy had slowed down by about 1 per cent during that time.

At the time of SARS outbreak, China was the sixth-largest economy and accounted for only 4.2 per cent of the world's GDP. While, the Asian giant is now the world's second-largest economy, accounting for 16.3 per cent of the global GDP, therefore, any slowdown in the Chinese economy would impact the global economy.

The RBI governor said that the coronavirus outbreak appears to be larger than SARS and this time China's share in world GDP and world trade is much higher. "So, the coronavirus will definitely have an impact on the global GDP and global trade," he said adding that every major economy today will have to be very careful and must monitor the situation closely.

For India, China is an important trading partner and policymakers both in the government and the monetary authority "are very watchful of the developments that are taking place," he said.

If the Chinese authorities are able to contain the problem, the impact on the global economy and on India will be minimised, Das said.

On the impact on India, he said the pharmaceutical sector is sourcing raw materials from China.

"Most of the large pharma companies, according to information that we have, always keep stock for three-four months. So, therefore, they should be able to manage and also those provinces from where these pharma intermediates are sourced have not been impacted by the virus outbreak. Therefore, there is an expectation that the supply of pharma raw materials will be maintained," he said.

The other areas where India is dependent on China is mobile handsets, TV sets and certain other electronic products. "There again it is important that our manufacturers are able to develop alternative places of sourcing these raw materials."

"So, I think there is evidence that already our manufacturers are discussing with other countries in the Asian region. So, if they are able to quickly access raw materials from these other countries, then to that extent the problem on our manufacturing will be contained," he said.

He noted that the critical thing to be watched and monitored now is how quickly Chinese authorities are able to contain the problem. For India, he said, the important aspect is manufacturer should be able to quickly develop alternative sources.

India exports iron ore to China and it could be impacted, he said. "But in economics, something negative in one place always works positive elsewhere. So if your iron ore exports are impacted, then perhaps the raw material supply to our local domestic steel manufacturers will be at reduced costs. So their cost of production may go down."

Das said Coronavirus is a big human tragedy and the focus has to be on containing this menace.

China's GDP has risen dramatically since SARS outbreak in 2003. In 2002, China contributed 23 per cent to the world GDP growth, in 2019 China contributed an estimated 38 per cent of world growth.

The 11 Chinese provinces have announced an extended holiday period.

Meanwhile, the death toll from the coronavirus epidemic in China crossed the 2,000-mark on Wednesday with the death of 136 more people, while the overall confirmed cases climbed to 74,185, authorities said.


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Stocks fall on Wall Street, heading for another weekly loss
Rupee slides 53 paise to settle above 76 mark amid meltdown in equities
Sensex plunges over 700 pts; Nifty drops below 8,400
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In worst ever market crash, Sensex tumbles about 4,000 pts as India goes into lockdown
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Sensex rallies over 1,800 pts; Nifty reclaims 8,700 level
Coronavirus impact may render 3.8 cr people jobless in tourism, hospitality sector
Asia stocks dive, dollar soars as ECB bazooka fails to ease fears
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Govt may cut rate on small savings schemes in next quarter
India must prepare for fighting coronavirus and economic slowdown: Rahul
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KERALA NEWS
Kerala has been successful in containing outbreak of COVID-19, claims CM
 Thiruvananthapuram: Kerala Chief Minister Pinarayi Vijayan on Friday said the State has been success  
Elderly couple cured of COVID-19, says Kerala CM
32 new cases in Kerala, Elderly couple cured of virus
Covid-19: Punishment by police in Kannur for violating lockdown turns into row
INTERNATIONAL NEWS
Trump recommends Americans wear face masks, but says he won't
 Washington, Apr 4 (PTI) President Donald Trump has recommended Americans to cover their faces with s
Indonesia covers up to protect orangutans from virus threat
Bangladesh sees highest single-day jump in coronavirus cases, extends shutdown to Apr 11
US wages all-out war to defeat "horrible" coronavirus: says Trump, as death toll crosses 5,000
NATIONAL NEWS
EC postpones elections to 11 UP Legislative Council seats amid lockdown
 Lucknow, Apr 4 (PTI) The Election Commission has postponed the elections to 11 Uttar Pradesh Legisla
Coronavirus: No community transmission in Goa, says CM
Madhya Pradesh: Two senior health officials test positive for Covid-19
43 more test positive for virus in Mumbai; death toll 19
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