4 Sectors In India To Be Most Affected By Coronavirus Pandemic

According to a report by ICICI Securities, the construction, transport manufacturing, chemical manufacturing and machinery manufacturing sectors are likely to be most affected by the coronavirus pandemic in China.

However, the report said that crude oil, gems and jewellery, India's top imports that make for 46 percent of the total imports, are relatively immune to the health crisis in China that has shut down several manufacturing units for weeks.

The novel coronavirus has severely affected China, where the disease first originated. Having infected over 1.5 lakh and killed more than 6,500, the report said that the daily death toll due to the virus is still very high and given the number of infected people, the battle with the virus is far from over.

Out of India's total imports of $507 billion in the financial year 2018-19, 26 percent of the basket, which comprises iron and steel and inorganic chemicals, is likely to be affected modestly.

"We expect the impact on iron and steel to be moderate because India imports 11 percent of its iron and steel from China."

Also, India's biggest import source country for iron and steel, South Korea imports 20 percent of its requirement from China.

"Similarly, we expect the impact on inorganic chemical to be moderate as well since India imports almost 15 percent of its inorganic chemicals from China," the report noted.

Further, there are five import items that heavily depend on China- electrical machinery, machinery and mechanical appliances, organic chemicals, plastics and optical and surgical instruments. These items collectively account for 28 percent of India's import basket.

"The sectors likely to be worst-affected by the possible shutdown in China are construction, transport manufacturing, chemical manufacturing and machinery manufacturing," it added.