Coronavirus outbreak can be a great opportunity for India to increase exports, according to the Chief Economic Advisor Krishnamurthy Subramanian.
The Indian smartphones and electronics market has already been impacted by the novel coronavirus outbreak in Wuhan and China's closing down of its economy. The industry is faced with the double whammy of possible production cuts and launch delays owing to coronavirus outbreak. The epidemic in China has hit component supplies.
"Very hard to say what will manifest. However, the outbreak of the coronavirus provides a good opportunity for India to follow an export-driven model," Mr Subramanian said at the Indian Institute of Management-Calcutta.
Whether coronavirus proves to be a good opportunity for India to increase exports or not remains to be seen. As of now, coronavirus seems to be an economic challenge even for developed nations like the USA and the international lender World Bank.
According to World Bank President David Malpass, coronavirus will affect the economy negatively. Malpass stated that the coronavirus epidemic in Wuhan was likely to affect global supply chains.The World Bank head also stated that supply chains had to be adjusted to be able to get goods out "to make the products that the whole world economy is operating on".
Coronavirus death toll has exceeded 1,100 in China. The Hubei-province reported around 94 deaths on Wednesday.