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Exporters on edge as raging covid in China derails trade

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The covid-19 surge in China has triggered concern among Indian exporters as it may add to the softening of demand from Western countries The covid-19 surge in China has triggered concern among Indian exporters as it may add to the softening of demand from Western countries.

China, India’s largest trading partner, reported an 11% decline in imports in November, and the latest outbreak could further hit exports of Indian goods.

While experts noted that the impact on Indian exports from the outbreak in China would not be immediately visible, as orders for the next quarter have been received, China’s decision to stop publishing daily covid-19 data has created significant uncertainty about the severity of the spread. “The covid situation in China is a cause for concern both in terms of direct exports from India as also the uncertainty it creates in the short term," said Arun Garodia, chairman of the Engineering Export Promotion Council of India.

Engineering goods exports, accounting for nearly a fourth of the total merchandise exports, have been one of the hardest hit due to the slowing demand in China and the West.

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