Indian macroeconomic outlook vulnerable: Fin Min

Given the disruption of trade with China due to the coronavirus outbreak, government on Monday said India’s near-term macroeconomic outlook is vulnerable. Numerous channels like trade, production and supply chain disruptions as well as decline in demand have been impacted by this pandemic, which has made its presence felt in over 100 nations. However, the government also observed that the latest data do not suggest any adverse impact on the economy, and sliding crude oil prices may be a silver lining.

The Minister of State for Finance Shri Anurag Thakur in a written reply to a question in the Lok Sabha stated: “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”.  He also explained that 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.