On March 4, 2020, In accordance with the estimates prepared by Division on International Trade and Commodities, UNCTAD and published by United Nations Conference on Trade and Development (UNCTAD) titled “Global trade impact of the Coronavirus (COVID-19) Epidemic”, India is among the top 15 economies most affected by the slowdown of manufacturing in China due to Coronavirus (COVID-19) epidemic, which is disrupting world trade and could result in a 50 billion dollar decrease in global exports. The estimates are highest for European Union (EU) with an impact of USD 15.6 billion.
Impact on Indian Trade
-India has faced a trade impact of 348 million dollars due to slow down in China’s production.
-Its high impact is on chemicals sector, estimated at 129 million dollars, textiles and apparel at 64 million dollars, automotive sector at 34 million dollars, electrical machinery at 12 million dollars, leather products at 13 million dollars, metals and metal products at 27 million dollars and wood products and furniture at 15 million dollars.
Global Impact:
–Most affected economies: EU (USD 15.6 billion) is followed by the United States [US (USD 5.8 billion)], Japan (USD 5.2 billion), South Korea (USD 3.8 billion), Taiwan Province of China (USD 2.6 billion) and Vietnam (USD 2.3 billion).
–Most affected sectors: Precision instruments, machinery, automotive and communication equipment.
-It should be noted that China’s manufacturing Purchasing Manager’s Index (PMI) declined to 37.5, its lowest reading since 2004.
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About UNCTAD:
Establishment- 1964
Headquarter– Geneva, Switzerland
Secretary-General– Mukhisa Kituyi
