WHO is working closely with global experts, governments and other health organizations to provide guidance on precautionary and preventive measures to the different countries.
We cannot deny the fact that the COVID-19 outbreak in China is expected to have a major effect on the economy globally including economic recession, trade, damage to the supply chain, goods, and logistics.
Impact of Coronavirus on the world economy
Since there is less demand, China's GDP is projected to decelerate by 1-1.25 percentage points over 2020. Different towns and provinces in China are still in lockdown mode. At purchasing power parity, China accounts for approximately 19.71 percent of global GDP and will naturally affect the economy globally. Therefore, global GDP is estimated to have an impact of around – 0.5 percent. Around 500 million people in the country will be impacted by the lockout which will have a significant effect on the consumption of its product.
Impact of Coronavirus on the Indian Economy
Coronavirus is impacting the Indian economy up to a great extent and it is affecting the Indian industries too. In the imports, India's dependence on China is enormous. Of the top 20 goods (at the two-digit HS Code) that India imports from the world, China accounts for a large share of the total.
India accounts for 45 percent of China's overall electronic imports. Near about 1/3 of the machinery and nearly 2/5 of the organic chemicals purchased by India from the world come from China. Approximately 65 to 70 percent of active pharmaceutical ingredients and about 90 percent of certain mobile phones come to India from China only.
Some chemical plants in China are now shut down. Thus shipment logistics will be limited. It was found that 20 percent of the production was affected by the disruption in the supply of raw materials. China is a big Indigo supplier which needs denim. Business is likely to get affected in India so people have to secure their supplies.
No doubt Chinese companies are affected. If the shutdown persists in China, an 8-10 percent contraction in Indian automotive manufacturing is expected in 2020.
Despite being one of the world's largest drug exporter types, India's pharmaceutical industry relies heavily on imports as bulk products. It will also be affected because of the coronavirus outbreak.
The largest manufacturer of electronics is China, by providing the final product or raw material used in the electronics industry. India's electronic industry may face disruptions in supply, output, reduction in product prices as a result of heavy reliance on the supply of electronics components directly or indirectly, and local production.
New Year holidays in China were extended due to the coronavirus outbreak which adversely affected Indian IT companies 'revenues and growth.
Tourism and Aviation:
Tourist inflows from China and other East Asian regions to India will reduce due to the result of the coronavirus outbreak, which will affect the tourism sector and its revenues.
A COVID-19 epidemic is rapidly sweeping across borders. China - the second-largest economy in the world has been stagnant. This outbreak is declared by the World Health Organization as a national emergency. The impact in India may be felt by disruptions in the supply chain from China which would affect each sector in India.