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Coronavirus outbreak may promote India-made raw materials: Experts
Mar. 9, 2020
In wake of coronavirus outbreak in China, the industries in Aurangabad chiefly dependent on Chinese imports have taken a hit. However, the industry representatives say that the episode will promote India-made raw materials.
According to president of Chamber of Marathwada Industries and Agriculture (CMIA) Giridhar Sanganeria, there are negatives and positives to the coronavirus outbreak. “The companies chiefly based in China or the ones that are dependent on Chinese imports like agrochemicals, pharmaceuticals manufacturers who import bulk raw materials from China are impacted. In addition, the exports are also down as containers are not coming,” Sanganeria said.
He, however, said that with the virus outbreak, the industries have a chance to Indianise their raw material sourcing. “This is a big chance and our industries should jump forward to grab this opportunity,” the CMIA president said. He said that India is a self-sustained economy. “We have the ability to consume whatever we produce unlike China which only consumes 10 items of the 100 it manufactures,” Sanganeria stated.
Meanwhile, the industry representatives are also worried that the virus outbreak may lead to further job cuts and increase in costs. According to president of Marathwada Association of Small Scale Industries and Agriculture (MASSIA) Dyandeo Rajale, due to the cessation in Chinese imports, there is a chance of slowdown in agrochemicals, pharmaceutical and electronics industries in Marathwada.
“The previously ordered stock is going to end and this will have multilayer impact on the industry. Apart from the hit to revenue, this would also eventually lead to slashing of manpower. If there is no raw material to manufacture, then the machines are also brought out of operation,” Rajale said.
The Massia president said that the cost is also expected to rise as there will be a slowdown in production. The regional industrial bodies have advised the local industries to become self-sufficient in this situation.
Sandeep Nagori of the Vibrant Business Group said that the next three months will be crucial for India to prove itself in the international market. “Earlier this week, I met with Bangladesh officials. The Vibrant Business Group is holding a meeting with a delegation from Greece and Germany on Sunday. The delegation will visit seven to eight factories and talk to us about procurements. On March 27, officials from the Qatar government will visit the city,” Nagori said. This is the time to prove the world as an obvious choice for imports, he added.
Source: Times of India
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