• UGI USER
  • Dec 06, 2023
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CHINA’S PNEUMONIA OUTBREAK RAISES CONCERNS

Why in the News?

A recent surge in mysterious pneumonia cases in China has raised alarms among Indian traders, potentially disrupting trade activities and impacting economic recovery.

Reason of Concern: India heavily relies on China for critical imports and depends on the demand generated in the Chinese economy for export growth.

Source: Hindustan Times

 Persistent Dependency on Chinese Imports:

  • The country relies on Chinese inputs for various sectors, notably in electronic exports.
  • India’s pharmaceutical sector heavily relies on China for Active Pharmaceutical Ingredients (APIs).
  • While measures like Quality Control Orders aim to curb imports, India’s electronic imports from China alone exceeded $27.6 billion in the last financial year.
  • Disruptions in imports from China, constituting nearly $100 billion in the last financial year, could have adverse effects on the economy.

Concerns Over China as an Export Destination:

  • China is also a crucial export destination for Indian goods, including engineering products, tea, cotton, and marine exports.
  • Traders express worries about a potential slowdown in demand from China due to pneumonia cases and the ongoing property crisis, impacting India’s fourth-largest export destination.