Indian exporters are anticipating a hit of around $1 billion due to disruption in trade because of closed borders and order cancellations. The coronavirus pandemic is expected to hit labour intensive sectors like gems and jewellery, lifestyle goods, carpets and handicrafts the most. Traders are expecting the impact to come around in a lead time of three months.
Director General at Federation of Indian Export Organisations, Ajay Sahai told The Economic Times that if orders are not finalised not then there will be a lead time of three months. "Remittances will be affected since only essential purchases are happening," he told the daily. The association has cancelled ten of its international shows in March and April, and two in India.
Founder of Oscar Expo Design LLP Mahavir Sharma told the daily that orders worth Rs 1.5 crore have been put on hold for 20-30 days. Lower crude oil prices are also expected to affect the value of exports.
The report mentioned that cancellation or postponement of exhibitions and conferences have dealt a blow to the $2.5 trillion trade show industry. Frankfurt's Light and Building and the Milan Furniture Fair both have been rescheduled.
An Engineering Export Promotion Council official told the daily that demand is low on products such as steel and ferro-alloys as Italy is a major market. Italy has been severely hit by the pandemic. The official also said that with China stabilising, they will have the inventory, leading to a pressure on prices.