Centre to take sector-specific measures to tackle fallout
The government will take sector specific measures to counter the impact of coronavirus (COVID-19) epidemic on domestic industries, particularly exports, based on a comprehensive feedback from the ministry of commerce and industry, two senior officials said.
Commerce and industry minister Piyush Goyal is meeting industry representatives on Tuesday to take stock of the situation as some sectors so that the government can take informed decision, they said requesting anonymity.
Coronavirus is spreading from China to other countries, which is alarming for the global economy and it also adds to the “certain amount of uncertainty” for the Indian economy in terms of disruptions in supply value chain, the first official said. The epidemic spooked investors’ sentiment across the globe and the BSE Sensex on Friday sharply fell by 1,448 points, worst single day drop since August 24, 2015.
According to the officials, India is dependent on China for supply of more than 1,000 products, including raw materials and their shortage could stoke inflation. There is, however, no immediate threat of any spike in prices, the second official said. The retail inflation, measured by the Consumer Price Index (CPI), was 7.59% in January, highest since May 2014, mainly due to high food prices and costlier fuel.