• Monday, June 27, 2022

Business

COVID-19 might impact India’s trade worth $348 million: UN report

Representational image (iStock)

By: Pramod Thomas

THE trade impact of the coronavirus epidemic for India is estimated to be about $348 million, said the United Nations Conference on Trade and Development (UNCTAD) report.

India is among the top 15 economies most affected as slowdown of manufacturing in China disrupts world trade.

For India, the trade impact is estimated to be the most for the chemicals sector at $129 million, textiles and apparel at $64 million, automotive sector at $34 million, electrical machinery at $12 million, leather products at $13 million, metals and metal products at $27 million and wood products and furniture at $15 million.

Further, the outbreak may result in a $50 billion decrease in exports across global value chains, the report said.

The most affected sectors include precision instruments, machinery, automotive and communication equipment.

The trade impact for India is less as compared to other economies such as EU, the US, Japan and South Korea.

“The 2 per cent contraction in China’s manufacturing output has ripple effects through the global economy and thus far has caused an estimated drop of about $50 billion across countries,” UNCTAD said.

Pamela Coke-Hamilton, who heads UNCTAD’s Division on International Trade and Commodities, said for developing economies that are reliant on selling raw materials, the effects could be felt “very, very intensely.”

As per the report, the most affected economies are the European Union ($15.6 billion), the US ($5.8 billion), Japan ($5.2 billion), South Korea ($3.8 billion), Taiwan ($2.6 billion) and Vietnam ( $2.3 billion).

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