Amid the massive outbreak of novel Coronavirus globally, India-China trade faces major restraints. The bilateral trade affairs between both countries are extensive in the sectors of steel, oil&gas, pharmaceuticals, agrochemicals, automobiles, medical equipment, consumer durables, and IT services.
After India imposed restrictions on the trade recently, the markets have been facing a shortage of many necessary imports.
India Ratings and Research (Ind-Ra) report said that the economic impact of the outbreak in the mainland-China will be worse than the SARS outbreak in 2003, as the world was less dependent on China back then.
Today China is the biggest manufacturing source which has a huge contribution to the global GDP.
As a result of the outbreak of the deadly COVID-19, Indian along with global equity markets will supposedly fall further as quoted by many economic analysts.
India has imported goods from China worth $52 billion between April and December 2019, which depicts a huge trade dependence bilaterally between both the countries.
India’s current gross domestic product (GDP) growth slipped to nearly 4.7% in October-December 2019. The halt in the imports of more than one-fifth of its total non-oil, non-gold goods from China, has contributed to 7-year-low GDP marked by India.
The latest BSE Sensex also crashed 1,448.37 points, or 3.64%, to close at 38,297.29 on Friday.
Recently, India said that some restrictions were imposed on the export of certain medical equipment which is running short due to WHOs advisory on coronavirus.
China raised the issue of the restrictions after which the spokesperson in the Ministry of External Affairs released the statement.