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Corona virus effect on Logistics


INDIA and China have an estimated trade relation of over 87 bn USD, wherein INDIA imports goods worth 78 bn USD mainly comprising of electronics, steel, machinery, etc and export goods worth upwards of 11 bn USD

Currently at least 51,000, including 163 Fortune 1,000 companies around the world, have one or more direct (or tier-1) suppliers in the impacted region (China’s Hubei province) and at least five million companies have one or more tier-2 suppliers in and around the epicentre of the outbreak.

Primarily pharmaceutical, Mobile manufacturers , telecom, power sector would be adversely affected which could result in paucity of finished products, assembly lines shutting down and even Job losses in INDIA. 

The threat to disrupt the supply chain logistics is prevalent, that too during the end of this fiscal year wherein the trades are at its peak due to meeting of deadline by Indian manufacturer. But given the current scenario, one cannot expect an increase but rather a decrease in volume of cargo being imported. 

Logistics Supply now completely suspended from china. Many of the factories and logistics warehouses are on extended leave, not only in Wuhan, but also Guangzhou, Shenzhen, and Shanghai. Hong Kong, with recent protest problems of its own, is also restricting incoming people and shipments from China and outbound flight operations. Some factories are being ordered to stay shut.  Workers are afraid to go back to work even if their factory is open.

Having the said above, this presents an opportunity for INDIA to increase its presence in exporting its goods under the make in INDIA initiative. 

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