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Virus not to have much impact on next fiscal's growth: CEA
19 Mar '20
2 min read
Pic: Shutterstock
India's near-term macroeconomic outlook is vulnerable to disruption of trade with China due to the novel coronavirus outbreak but the latest data do not suggest any adverse impact on the economy, parliament was told recently. Chief economic adviser (CEA) K Subramanian has also said the pandemic will not have much impact on the next fiscal’s economic growth.
Subramanian also said that India can achieve 6 per cent gross domestic product growth in fiscal 2020-21. However, he also mentioned that India may take some more time to reach 7 per cent growth. He sees the coronavirus pandemic as an opportunity to expand exports.
"As is true for the world at large, India's near-term macroeconomic outlook is also vulnerable to disruption of trade with China and second-round effects arising from expected slowdown in global growth," minister of state for finance Anurag Thakur told parliament lower house.
"Additionally, a positive impact on India's economy may arise from decline in global oil prices triggered by the outbreak of COVID-19," he said.
In order to address the possibility of trade-induced adverse impact on the economy, the government is constantly engaging with export promotion councils and trade bodies, particularly in pharmaceutical, electronics and automobile sectors where the supply chains are sourcing imports from China, he said.
These agencies, Thakur said, have been put in touch with Indian Missions abroad to secure and transport inventories available with existing suppliers.
Indian Missions abroad have also been asked to explore alternative sources of supply of raw materials in their respective countries for supporting India's domestic production, he added.
Meanwhile, the skill development and entrepreneurship ministry issued an advisory to its affiliated institutes to remain closed as per state governments’ directives amid the COVID-19 outbreak. The institutes include all skill development training centres, industrial training institutes (ITIs) and Jan Shikshan Sansthans (JSS).
Subramanian also said that India can achieve 6 per cent gross domestic product growth in fiscal 2020-21. However, he also mentioned that India may take some more time to reach 7 per cent growth. He sees the coronavirus pandemic as an opportunity to expand exports.
"As is true for the world at large, India's near-term macroeconomic outlook is also vulnerable to disruption of trade with China and second-round effects arising from expected slowdown in global growth," minister of state for finance Anurag Thakur told parliament lower house.
"Additionally, a positive impact on India's economy may arise from decline in global oil prices triggered by the outbreak of COVID-19," he said.
In order to address the possibility of trade-induced adverse impact on the economy, the government is constantly engaging with export promotion councils and trade bodies, particularly in pharmaceutical, electronics and automobile sectors where the supply chains are sourcing imports from China, he said.
These agencies, Thakur said, have been put in touch with Indian Missions abroad to secure and transport inventories available with existing suppliers.
Indian Missions abroad have also been asked to explore alternative sources of supply of raw materials in their respective countries for supporting India's domestic production, he added.
Meanwhile, the skill development and entrepreneurship ministry issued an advisory to its affiliated institutes to remain closed as per state governments’ directives amid the COVID-19 outbreak. The institutes include all skill development training centres, industrial training institutes (ITIs) and Jan Shikshan Sansthans (JSS).
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