(MENAFN- KNN India) New Delhi, Nov 29 (KNN) The surge in respiratory illnesses in China has tensed the Indian exporters as it would impact India's trade due to its influence on global supply chain and China being its fourth largest export market.
Domestic exporters are cautiously watching the current influenza situation in China and have expressed concern if the illness spreads more.
This comes at a time when India's goods exports have seen a steep decline this year on account of weak demand from Europe and the United States due to high-interest rates following the Russia-Ukraine war and the geo-political tensions in the Middle East with the outbreak of the Israel-Hamas war.
While exports of engineering, electronic, and pharmaceutical products have shown recovery in key markets such as the US and Europe in October, exports of these items have registered a sustained decline in China due to the deepening property sector crisis.
Exports to China slipped by a sharp 28 per cent to USD 15.32 billion in FY23, while imports jumped by 4.16 per cent to USD 98.51 billion.
Ajay Sahai, head of the Federation of Indian Export Organisation (FIEO) said,“Exporters are concerned as China is already facing headwinds that have hit demand. Although there is no immediate threat as two to three months' worth of inventory is maintained, it is crucial that the spread is contained.”
India's engineering goods exports to China in October, as per official numbers, slipped over 18 per cent to USD 213.24 million compared to USD 260.30 million in the previous month. The share of engineering exports in India's total merchandise exports stands at 24 per cent.
“Engineering exports to China have been declining even as it has improved in other regions such as Australia, Russia, Saudi Arabia, the United Kingdom and the US after eight months. That is the reason the already declining exports could be hit due to the rising respiratory illnesses in China,” Arun Kumar Garodia, Chairman of the Engineering Export Promotion Council of India (EEPC) said.
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