Can India Fill the Export Market's Void Left By China Due to Coronavirus?
Coronavirus outbreak has tremendously affected the Chinese economy. This brings in an opportunity for India to push its exports in the global markets and fill the void left behind by the other neighbouring countries, and industry body. According to Assocham, Indian exporters of electronic, pharmaceuticals, speciality chemicals and automobile segment rely on China for raw material and thus, they are facing supply constraints. Alongside, the pandemic has increased various opportunities for domestic traders.
"Barring a few segments, a large number of engineering exports from India can fill up the market vacated by China; so is the cases with products like leather and leather goods," says Deepak Sood, Secretary-General, Assocham. He further states that India could also utilize this opportunity in segments like agriculture and carpets.
"We also need to scale up several of our sectors to compete effectively with China even when the Chinese exporters are able to normalize their global supply chain," Deepak adds.
The coronavirus pandemic is certainly proving to be a major concern for the entire world. Thus, larger economies such as India could take up the opportunity to fill up the gaps in the global market and this issue should be handled with a clear strategy.
Purchasing Managers' Index (PMI) data reports that China's factory output level in February has plummeted to the least in two decades. Eventually, its consequence is to be resonated worldwide and bound to be felt in the global market.
India's merchandise exports have constricted by 1.93 percent in the period April to January of the current fiscal. It is expected that the forthcoming months could bring in great market access to our exporters in the absence of usually aggressive and competitive Chinese suppliers.