Exporters in India have expressed their concern over the influenza situation in China, warning that any spread of the disease could disrupt global supply chains and adversely impact world trade. While the current situation is not considered alarming, exporters fear that if the illness spreads to other parts of the world, it could severely impact global trade due to China’s central role as a hub for manufacturing and exports.
The Indian government, acknowledging the potential risks, announced that it is prepared for any exigency that may arise from the influenza situation in China. The outbreak of H9N2 and clusters of respiratory illness in children in China have been closely monitored. The Union Health Ministry in India has stated that there is a low risk to the country from avian influenza and respiratory illness cases reported in China.
Leading exporters and industry experts emphasize the need for caution and vigilance. Rafeeq Ahmed, Chairman of Farida Group, an esteemed leather exporter, stated, “We are cautiously watching the situation. If the diseases spread, it will have an impact on trade.” Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), echoed this sentiment, expressing concern over the situation and highlighting the crucial nature of the following days.
Global supply chains, which have already suffered from the ongoing pandemic, could face further disruption if the diseases in China spread once again. Khalid Khan, a Mumbai-based exporter, emphasized the need to closely monitor the situation but advised against panic, stating, “At present, there should not be any panic.”
For the time being, there have been no reported problems or threats to the global supply chain, and imports from China have been smooth. SC Ralhan, an engineering exporter based in Ludhiana, assured that their imports from China have remained unaffected. However, exports to China have seen a slight increase, contributing to the existing trade deficit between the two countries.
To address this deficit, the NITI Aayog, a government think tank, has initiated a study to develop a comprehensive action plan. The aim is to bridge the trade deficit over time, align trading strategies with emerging geopolitical situations, and mitigate potential risks to safeguard supply chains.
The situation in China continues to be closely monitored by both Indian exporters and the government, as they remain cautious about the potential impact on global supply chains and trade.
