Coronavirus Impact on India's Industries
Created on 27 Feb 2020
Wraps up in 3 Min
Read by 3.9k people
Updated on 10 Sep 2022
Coronavirus is still killing people. But, how has it affected Indian industries? Read and find out in today’s article
If you make a list of important people in your life, you might not include your neighbors in it. But, have you ever thought how important are neighbors in our life? Although you don’t have to do anything directly with them, they still have an impact on your life. Imagine a case where your neighbor is in deep trouble and your life gets adversely affected because of the same.
This is exactly what is happening with India as China is still suffering the wrath of Coronavirus outbreak. Death toll is increasing day by day in China and a proper cure is still not available. However, this has had an impact on Indian industries and companies are still trying to figure out as to how to deal with this. Which are the industries or companies that have been affected the most in India? Read on to find out.
‘Viral Fever’ Hits Indian Industries
Whenever you’re making tea and you come to know that the sugar is over, what do you do? If you haven’t got much time, you would definitely go to your neighbor and ask for some sugar, right? Now imagine if you enter into a contract with your neighbor for supplying certain things to you and he falls ill severely.
Coronavirus has not only put brakes on Chinese companies but has halted functioning of Indian companies as well. The major sectors which have got hit are Steel, Oil & Gas, Pharmaceuticals, Agrichemicals, Automobile & Auto Components, Consumer Durables and IT Services. We don’t know which industry is left out.
What’s the Exact Effect?
China is suffering both ways as in case of demand as well as supply. The demand has gone down drastically most of the materials whereas the supply has been terribly restricted because the companies have ceased to function. Since India is a prominent trade partner of China, it was evident that India would suffer the effect too and that’s what has happened.
Being a net exporter of steel, China is currently suffering from excess domestic inventory. Oil and Gas is a sector which is indirectly benefiting India as China is suffering from demand shortage. China is a huge market for oil & gas and since their demand has got hid badly, India is getting that oil at a cheaper rate. In case of Indian pharmaceuticals, they are currently curtailing the supply disruptions from China however, if the situation continues till June then there might be a knee-jerk reaction in the form of a supply shock.
Automobiles and auto components is one of the worst hit sectors due to Coronavirus. Tata Motors had to shut down its JLR (Jaguar Land-Rover) operations in China and the effect could clearly be seen in its share price. Hero Motocorp, TVS Motors and others have also suffered a supply-chain disruption due to the Coronavirus outbreak. Since, China is a major supplier of auto components to many of the Indian automobiles the situation seems to be worsening up for the already ailing sector.
An important question about this epidemic is – why hasn’t a vaccination been developed yet? Well, the virus has originated from China and we all know that more than creating something original, China believes in counterfeiting. Since no other country has developed a vaccination yet, China couldn’t copy and hence, the Coronavirus is spreading devastation in an unstoppable manner (No offence). But, on a serious note, a vaccination needs to be developed soon because not only the health but even the market getting affected badly.
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