The Corona Havoc

The trending topic of 2020 is all about the disruption led by the novel coronavirus aka COVID-19. In fact, earlier this week the World Health Organization (WHO) declared COVID-19 as a global pandemic. The pandemic has not only claimed over 4,000 lives around the world but has also wiped out over US$5 trillion from global stock markets.

Talking about India, neither the country’s citizenry nor the economy is immune to the virus. So far, the country has reported over 80 cases, with one death. On 13th March, the tremors of the panic were also felt across Dalal Street, as the NSE’s Nifty hit the lower circuit in the early session, halting trade for the first time in 12 years.

The pandemic is likely to affect businesses, both exports and domestic, and investors’ sentiments are likely to remain damped until the virus is contained. Meanwhile, the recommendation for everyone remains the same -- follow trusted sources, share accurate information, and stay safe!

Coronavirus may knock 1.3 per cent off global GDP growth

Stock markets globally lost about $5 trillion of wealth during the last week, as measured by the MSCI all-country index, roiled by coronavirus fears. The full impact of the coronavirus outbreak on the global economy is still not assessable. “Right now the market is saying that this is unbounded. We don’t know what the limits are and we don’t know where it’s going to peak,” said Graham Tanaka, the Chief Investment Officer at New York-based Tanaka Capital.

Likely drop in India’s coffee exports as coronavirus fear spreads

India’s coffee exports could take a knock as the frequency of eating out drops in Italy and the Gulf countries -- India’s main buyers -- over fears of the spread of coronavirus (COVID-19). About 70% of the coffee produced in the country is exported. Italy, the largest buyer of Indian coffee, is anticipating a 10-12% drop in consumption. “The Italian government has asked people to maintain a distance of 1.5 m in public which will hit the consumption in coffee bars and community tables, a part of the country’s culture,” said Ramesh Rajah, President of the Coffee Exporters Association.

Rs 600 cr Andhra Pradesh granite exports held up

Granite quarry owners in Prakasam district are worried as an estimated Rs. 600 crore worth granite exports got held up due to lack of loading and unloading of granite at Xiamen port in China and at Krishnapatnam port and at various granite quarries in the district. Attributing the situation to the coronavirus outbreak, Galaxy Granite Quarry Owners Association General Secretary MA Azeem says, “Two vessels with around 1,20,000 tonnes of granite are anchored off the coast of Xiamen port and two vessels are still in transit.”

Exporters must leverage gains quickly

The fast spreading coronavirus could help India strengthen its position in the global supply chain but the decisions have to be taken at a faster pace to make inroads, according to corporate leaders and industry observers. China commands around 12% of the global trade compared with India’s share of 2.1%, making it a much larger supplier to the world than India. “One of the beauties of globalisation is that the world has got connected supply chains and China took a pole position in becoming a key part, especially in the manufacturing sector. Almost no vertical in the world can do without China in making some components,” said Sunil Kant Munjal, Chairman of Hero Enterprises.

US trade deal to push India's exports: Piyush Goyal

Commerce and Industry Minister Piyush Goyal on 7th March said a trade deal with the United States will help push more exports but made it clear that the government will not rush into any such agreement. “Negotiations with the US are to India’s advantage because we have a trade surplus (with the US)...it opens up more opportunity for our exports in a big way,” Goyal said at the Economic Times Global Business Summit in New Delhi.