Saturday, Jun 06, 2020 | Last Update : 08:48 PM IST

74th Day Of Lockdown

Maharashtra80229286942849 Tamil Nadu2869415762235 Delhi2633410315708 Gujarat19119130111190 Rajasthan100847359218 Uttar Pradesh97335648257 Madhya Pradesh89965878384 West Bengal73032912366 Karnataka4835169357 Bihar4598223329 Andhra Pradesh4250256573 Haryana3597120924 Telangana32901627113 Jammu and Kashmir3142104835 Odisha247814819 Punjab2415204347 Assam19894434 Kerala170071215 Uttarakhand115328610 Jharkhand7642975 Chhatisgarh6781892 Tripura6221730 Himachal Pradesh3691636 Chandigarh3022225 Goa126570 Manipur124110 Puducherry90330 Nagaland8000 Arunachal Pradesh3710 Meghalaya33131 Mizoram1710 Sikkim200

India least vulnerable to coronavirus in Asia: Nomura

THE ASIAN AGE. | RAVI RANJAN PRASAD
Published : Feb 19, 2020, 7:03 am IST
Updated : Feb 19, 2020, 7:03 am IST

The deeper slowdown in global growth is likely to weigh on exports and investment growth, Nomura said.

India stands as the least vulnerable to Covid-19 or coronavirus in Asia according to a report by Japanese brokerage firm Nomura while China's GDP growth may dip to 3 per cent in the first quarter.
 India stands as the least vulnerable to Covid-19 or coronavirus in Asia according to a report by Japanese brokerage firm Nomura while China's GDP growth may dip to 3 per cent in the first quarter.

Mumbai: India stands as the least vulnerable to Covid-19 or coronavirus in Asia according to a report by Japanese brokerage firm Nomura while China's GDP growth may dip to 3 per cent in the first quarter.

 But supply disruptions of Chinese imports in India may affect domestic production but India could also benefit from lower commodity prices and less competition from cheaper Chinese imports, analysts from Nomura said.

"It is not a part of the global value chains centered around China, it is less dependent on China for visitor arrivals (2.7 per cent of total visitors) and China accounts for only 5.3 per cent of its  total exports. These factors should limit the indirect impact on India," Nomura said in a note.

However, China accounts for a much larger share of India’s imports (14.2 per cent) and any disruption in China’s production will result in lower imports of primary and intermediate goods into India and disrupt domestic production, the report said.

Over 60 per cent of Chinese imports into India comprise electrical machinery & equipment, nuclear reactors & boilers and organic chemicals, with an additional 7 per cent in the form of plastic articles and fertilisers. A disruption in these imports will adversely affect key industries such as pharmaceuticals, autos, electronics, solar and agriculture, and could lead to higher prices if inventories are depleted.

On the positive side, India should benefit from lower commodity prices, and domestic textiles, fertiliser and MSME firms should benefit from less competition from cheaper Chinese imports.

In the absence of an early check on the spread of the Covid-19 outbreak, the drag in the Indian economy in the first quarter is likely to intensify, with the risk of some factories halting production lines owing to input shortages.  The deeper slowdown in global growth is likely to weigh on exports and investment growth, Nomura said.

Tags: nomura, coronavirus
ADVERTISEMENT
ADVERTISEMENT