Which are the sectors that will be affected more by the corona virus disaster? Classify it into primary, secondary and tertiary sectors.
Answers
Answer:
Covid-19 impact
The number of coronavirus cases in India rose to 29, including 16 Italians touring through Rajasthan, the government said on Wednesday. The trade impact of the coronavirus epidemic for India is estimated to be about $348 million. The country now figures among top 15 economies most affected by the manufacturing slowdown in China, says a UN report.
Though India is one of the top formulation drug exporters in the world, the domestic pharma industry relies heavily on import of bulk drugs (APIs and intermediates that give medicines their therapeutic value). India imported around Rs 24,900 crore worth of bulk drugs in FY19, accounting for approximately 40 per cent of the overall domestic consumption. With India’s API imports from China averaging almost 70 per cent of its consumption by value, importers are at the risk of supply disruptions and unexpected price movements. For many critical antibiotics and antipyretics, dependency on imports from China is close to 100 per cent. These APIs require large capacities of fermentation boilers, a USP of Chinese manufacturers, giving an upper hand to Chinese manufacturers.
Chemicals
Local dyestuff units in India are heavily dependent on imports of several raw materials, including chemicals and intermediates, from China. Delayed shipments from China and a spike in raw material prices are affecting the dyes and dyestuff industry, especially in Gujarat. Nearly 20 per cent of the production has been impacted due to the disruption in raw material supply. China is a major supplier of specialty chemicals for textiles, especially Indigo required for denim.
Solar Power
Solar power project developers in India continue to source solar modules from China. Modules account for nearly 60 per cent of a solar project’s total cost. Chinese companies dominate the Indian solar components market, supplying about 80 per cent of solar cells and modules used here, given their competitive pricing. Chinese vendors have intimated Indian developers about delays happening in production, quality checks and transport of components, due to the outbreak.
The extended Lunar New Year holidays in China have adversely impacted the revenue and growth of domestic IT companies, operating out of China. IT companies are heavily dependent on manpower and are not able to operate due to restriction in movement of people arising from lockdown and quarantine issues. Consequently, they are not able to complete or deliver the existing projects in time and are also declining new project
Shipping
There have been complaints of shipment delays between India and China, there are serious concerns regarding the overall earnings of Indian shipping companies in the first quarter of 2020. There has been a sharp drop in the dry bulk cargo movement since the third week of January 2020, as the shutdown in China has meant that ships cannot enter Chinese port
Tourism & Aviation
The aviation sector has also been impacted by the spread of coronavirus. The outbreak has forced domestic carriers to cancel and temporarily suspend flights operating from India to China and Hong Kong. Carriers such as Indigo and Air India have halted operations to China.
Many garment or textile factories in China have halted operations owing to the outbreak of coronavirus, adversely affecting exports of fabric, yarn and other raw materials from India. The disruption is expected to slow down cotton yarn exports by 50 per cent, leading to a severe impact on the spinning mills in India. Due to this slowdown in the flow of goods and hence revenue, textile units may be hampered in making annual interest and repayments to financial institutions, thereby defaulting their dues. This will also adversely impact the demand from cotton farmers, who were already witnessing subdued prices and fear that the said price may fall further if the China crisis continues unabated. It may be mentioned that India already has a price disadvantage against countries like Vietnam, Pakistan and Indonesia which have duty free access to China for export of cotton yarn.