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.