India can fill up export market space vacated by China due to Coronavirus: ASSOCHAM

Sunday, March 01, 2020

New Delhi, 29th February 2020:
With much of the Chinese economy, the second largest in the world, having been severely impaired due to Coronavirus, India can ramp up its export shipments to the global market in a large number of areas and fill up the space vacated by China, an ASSOCHAM analysis has noted.
 
It is true that India’s exporters of electronics, pharmaceuticals, speciality chemicals and to an extent automobile depend on China for raw material and are facing supply constraints, there are several areas where there are increased opportunities as well. “Barring a few segments, a large number of engineering exports from India can fill up the market vacated by China; so is the case with products like leather and leather goods. Besides, there are several agri related products and highly employment-intensive sectors like carpets which can be ramped up to meet the global shortfalls caused due to disruptions in China,” said ASSOCHAM secretary general, Mr Deepak Sood.
 
“We also need to scale up several of our sectors to compete effectively with China even when the Chinese exporters are able to normalise their global supply chain,” added Mr Sood.
 
He said while the health emergency of the scale of Coronavirus, which has been placed in the category of ‘Very High Risk’ by the World Health Organisation (WHO) is a matter of grave concern for the entire world, “it is incumbent on larger economies like India to fill up the gaps in the global market of merchandise and we need to approach the issue with a clear strategy.”
 
According to the latest PMI (Purchase Managers' Index), China's factory output in February, has plummeted to levels which are the worst in about two decades and; the consequences are bound to be felt in the global market. 
 
The ASSOCHAM analysis found that while India's merchandise exports have contracted by 1.93 per cent between April-January period of the current fiscal, the coming few months can provide our exporters greater market access in the absence of usually aggressive and competitive Chinese suppliers.
 
“However, since some of our export segments like pharmaceuticals do get impacted due to raw material shortage, advantage in other segments will not accrue in an auto-mode. It has to be acquired by a strategy; and the good thing is that the Commerce and Industry Ministry is seized of the issue and would be engaged with the exporters to assess the ground situation,” the ASSOCHAM secretary general further said.
 
 
About ASSOCHAM:
ASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. It was established by promoter Chambers, representing all regions of India. Having in its fold over 400 Chambers and Trade Associations, and serving over 4.5 lakh members across India. ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set to redefine the dynamics of growth and development in the Knowledge Based Economy. More information available on www.assocham.org
 
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