Amid new outbreak in China may increase inflation in India, know how
By Lokmat English Desk | Published: December 23, 2022 08:02 PM2022-12-23T20:02:18+5:302022-12-23T20:02:18+5:30
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The spread of Corona has increased in China and the situation is out of control. The number of patients is increasing in other countries including Japan and America. But this may affect the Indian economy and there is a possibility of an inflation bomb going off in the country.
As the outbreak of Corona has increased worldwide, this time the BF7 variant of the virus is proving to be more dangerous. The spread of this virus is increasing rapidly in the last 10 days. Corona virus patients are increasing from China, Japan, America to Taiwan.
Dependence of India on China: From electronics, clothing, pharmaceuticals to gold and diamond export companies are already worried about supply chain disruptions. As the situation in the neighboring country China is getting serious day by day, the production in the factory is getting affected. The highest rate of inflation in India.
Impact on drug prices: The raw materials required for the manufacture of medicines are not available in large quantities in India. It has to be imported from China. APIs are also included in biochemicals coming from China to India. It is used to prepare medicines. 60 percent of India's raw material for bulk drugs.
Mobile and electronics gadgets will be expensive: India imports large quantities of electronics, mobiles, tablets, laptops and other gadgets from China. Considering the current situation of Corona in China, smartphone brands may have to face major difficulties in importing spare parts. Because Indian companies are largely Chinese factories.
The price of gold will increase: When there is financial instability in the world, the price of gold also increases. Even in the previous wave of Corona epidemic, it was seen that gold prices skyrocketed. According to experts, when there is a financial crisis, people uses to emphasize on safe investments.
Apart from this, Indian garment manufacturing and exporters companies order accessories from China. Due to the increasing outbreak of Corona affecting the supply, brands have to look for different options. Along with this, the supply of auto parts also cools down. The result is expensive.
