India’s economy is not safe from the effects of coronavirus as this deadly outbreak will hamper the trade channels with China, says Reserve Bank of India Governor Shaktikanta Das.
Besides, the growth momentum of the country could be impacted by COVID-19, added Das.
“India is not immune to this pandemic. Already more than 100 cases have been reported. Efforts are being mounted by the government on war-footing. COVID-19 could impact India directly through trade channels, in which exposure to China is relatively high,” he said.
Governor Das said, “Second round of effects of the pandemic could operate through a slowdown in the domestic economic growth and it would obviously be a result of synchronised slowdown in global growth. As a part of that, the growth momentum in India would also be impacted somewhat.”
Shaktikanta Das’ comments on the pandemic came in reply to the manufacturers’ worry pertaining to disturbance in the supply chain. The Parliament was informed on Wednesday by the Union Commerce Minister Piyush Goyal that due to the shutdown of factories in China, industries such as pharma, electronics and automobile that import components and raw materials are likely to get affected.