Indian business sector is falling prey to the impact of coronavirus that is affecting the population and economy of China. Our country being the 7th largest importer of Chinese goods has been hit hard by the effect of coronavirus that has affected the Chinese population taking over a 1000 lives. It has majorly affected the Chinese economy and put the population under deep distress and at the same time damaged China’s international business relations.
Wuhan and Hubei states of China have been severely affected by Coronavirus which is also the prime steel producing hubs in the country. There is a huge amount of steel that gets imported to India
from China. Indian economy is to a lot of extent import oriented and China is one of its prime exporters.
There are a lot of sectors in India that are potentially affected by Coronavirus in China but steel being one of the prime import products is under high alert in the country. Variety of finished steel products has been imported from China for years now. The Coronavirus effect has on one hand decreased the production rate of China while on the other; it has increased the demand of steel in the countries it exports to. India being one of the heavy importers of Chinese steel spare parts has affected its manufacturing industries in a lot of ways.
From the infrastructure sector to the transportation sector, processes have been equally affected owing to shortage in supply and scarcity of material. Simultaneously, this shortage has led to the drop of finished steel prices in India and also stopped a lot of work in the manufacturing sector.
JSW and Tata, the primary steel giants of India are in a soup already as they see the drop in steel prices to be one of the major drawbacks of the current financial year. Both the companies have seen multiplied profit amounts in the previous financial year and with a drop in prices this year, the result can be a huge financial deficit that will ultimately affect the economy of the country.