New Delhi, Feb 8 : As the fear of coronavirus has gripped the world, the local traders say supply of several items, like auto parts, electronic goods and pharma products, would be hit if the deadly Wuhan virus prolonged for two more weeks.
The bilateral trade with other Southeast Asian countries, such as Singapore, Malaysia and South Korea, could also see disruptions.
In the wake of rising coronavirus toll in China and infections spreading to other countries, the aviation sector has been hit hard with airlines suspending flights to and from China.
The two Indian carriers, Air India and IndiGo, have suspended their flights to China and Hong Kong. They have also seen their flight occupancy dropping as people are avoiding travel.
According to the latest update, coronavirus toll has crossed 700 with nearly 30,000 people infected in China.
Ajay Sahai, Director General (and) CEO, the Federation of Indian Export Organisations (FIEO), said traders had seen shipments from China getting postponed following the outbreak of coronavirus in Hubei province.
"Right now what we have seen is that people have delayed shipments because ports, offices and factories are shut.
They have postponed it. But if the situation doesn't improve, a call will have to be taken by them as what to do with the order," Sahai said.
"If situation doesn't improve in a fortnight or so, the impact on trade would be more visible," he said.
Members of the trading community said they had been earlier informed that factories would open by February 10 but were not sure given the rise in toll.
Animesh Saxena, the President of Federation of Indian Micro Small (and) Medium Enterprises (FISME), said if the current situation continues in China trade would be impacted badly.
"A lot of electronic goods and auto components come from China. We are anticipating disruption in the supply chain in these sectors," Saxena said.
Asked about the impact on the apparel sector, he said it would not be substantial and might be limited to 10-15 per cent as the sector was not much dependent on China for raw material.
Economists said there was a sense of fear around coronavirus but its impact on travel and trade would depend if it prolonged.
They hope the deadly infection would certainly have its impact on economies in the Southeast Asian region and also other countries but would be limited to short-term.
"It's difficult to make impact assessment at this moment.
There will be impact on travel and trade, but how long the impact stays and how strongly it will hit is difficult to predict," said Pronab Sen, noted economist and India's first Chief Statistician.
Referring to spread of earlier infections, like SARS and Ebola virus, that became a public health concern globally, Riaz Thingna, Director, Grant Thornton Advisory, said coronavirus would impact travel, tourism and trade.
But it would be only a short-term issue, Thingna added.
(Nirbhay Kumar can be contacted at nirbhay.k@ians.in)
--IANS
nk/pcj.
Source: IANS
