This Is How CoronaVirus Will Impact India: Mobiles,TVs Will Become Expensive, INR Will Weaken
The coronavirus is causing havoc in the central districts of China and all around the globe.
The contagious Chinese virus is spreading rapidly and not only affecting the health but also the business and markets all round the globe.
China being the leading exporter and its markets closed has caused a lot of chaos worldwide.
Indian market is no survivor of this massacre, read the article to find out how.
Price hike for Indian Electronic Companies Importing From China
The Indian Smartphone and Electronic Companies can suffer losses due to the outbreak of the coronavirus in China.
According to the reports, China amounts to 75% of the total value of components used in TVs and around 85% in the case of smartphones. These companies import a lot of significant components like mobile displays, memory and LED chips, capacitors and so on from China.
The Chinese dealers have hiked the component prices by 2-3% following the epidemic.
The reports state that top brands like Xiomi, OnePlus, Apple, Lenovo, Vivo, Oppo, TCL and RealMe are likely to suffer due to disruption in the component imports.
A top executive at a leading Chinese phone maker said, “We are very, very concerned. There are travel advisories for our staff (regarding travel to or from China), and even the incoming cargo is now being hit. While buffer stock is being used now, there is no clarity on how we will tackle a longish disruption in supplies.”
Companies like Apple are searching for alternate solutions addressing supply sources.
The component price hike and shortage may lead to an increase in the prices of the products in India if the Chinese companies don’t open even after the extended holidays.
Chinese Virus Epidemic Forces Tech Firms To Shut Down
For starters, Apple, Amazon, Google, Facebook, Microsoft and many tech companies have restricted employees travel to and from China due to the growing epidemic.
The companies with their base in China have also limited or halted business travel.
Amazon is also approving work from home for employees for two weeks and to seek medical attention if any symptoms are witnessed who have or are traveling to China due to some critical reasons.
Apple has shut down three of its stores in China and is ensuring deep cleaning and checking the employee’s temperature initiatives.
The reports state that Google is also temporarily closing all of its offices in China, Hong Kong, and Taiwan as a result of the outbreak.
Wuhan is China’s seventh biggest city and a major motor manufacturing hub.
On January 29, 2020 Toyota announced that its production plants in China will stay closed until 9 February.
Several other car companies with their presence in Wuhan have taken actions asking their employees to return to their home countries due to coronavirus.
Will The Indian Rupee Get Affected?
On January 15, 2020 the USA and China signed the first economic and trade agreement by indicating the intent to end the economic and trade hostility.
The trade agreement covers a wide range of agreements on protection of intellectual property (IPR), transfer of technology on market-based principles and trade.
The impact of the Chinese virus outbreak on this deal has to be taken into credibility as Wuhan the source of the epidemic is a major transport and industry hub.
“We expect pressure on the US dollar with risks tilted towards the downside as now. For India, the mood swing in financial markets on account of aggressive posturing by the either side will become less. Thus, some order is expected in the global FX markets and Indian rupee will have an appreciating bias,” as stated by the Economic Research Department of State Bank of India – Coronavirus threatens global recovery.
The corona virus is believed to have its origins in the central Chinese city of Wuhan from a food market illegally selling wildlife.
Coronavirus has an extensive range of symptoms like fever, dry cough, shortness of breath and breathing difficulties.
According to reports, it’s not clear yet as to the dangers surrounding the virus but severe cases can cause pneumonia and death. Those who have weak immune systems or pre-existing medical conditions stand in the threat of this virus.