The outbreak of corona virus in china has hit a china as well as India’s economic market More than 200 Indian Business leaders said corona virus impact our business because china is the largest supplier of components for electronic goods , smart phones and chemicals . The main items to be exported from China to India are electronic items , organic chemicals and drugs , mobile parts and automobile parts . The reason behind corona virus impact on Indian markets is to the supply shortage of factory shutdowns in china , Chinese vendors have increase the prices of key components by 2- 3% due to shutdowns of factory and supply shortage and these hike depends upon the impact and how long the situation continues.
They also effect Indian electronic companies
China is the largest supplier of electronic items like mobile parts and other electronic items . Indian manufactures use 75% Chinese components for TV & almost 85% of that for the smart phone’s such as mobile display, open ac tv panels, open circuit boards, memory and led chips are imported from china.
The impact of coronavirus the import of these products is totally shutdowns from china , due to this that also impact the Indian electronic market. The price of these products is hike due to supply shortage between these two countries.
Tech Sector Feeling the impact of Coronavirus
our economist says , your GDP reduces almost 0.3% due to a virus outbreak because china plays a significant role in manufacturing side , we should focus on the supply chain of technology. If situation are continuing like this, then that may impact in the long term in IT industry.
According to FineSoft Technologies the IT sector may see indirect impact due to outbreak of coronavirus because shortage of workers in IT sectors that impact the company work , typically Indian companies are present in china as a branch office, joint venture ,subsidiaries.
There are three IT companies set up at Xuzhou and Dalian Guiyang to facilitate partners between Indian and Chinese companies, focusing on emerging like Artifical Intellligence , Internet of Things, Mobile App Development and Big Data.