New Delhi: Echoing the sentiment of Union Finance Minister Nirmala Sitharaman, RBI Governor Shaktikanta Das on Wednesday said that the coronavirus outbreak will have a limited impact on the economy of India. He also stated that the global GDP and trade will definitely get affected due to the large size of the Chinese economy. Also Read - Japanese Restaurant Vandalised in Paris Amid Fear of Coronavirus | Photoes Go Viral
Saying that only limited sectors in India will be affected, the RBI governor said alternatives are being explored to overcome such issues. Also Read - Coronavirus: Death Toll Reaches 2,000, Russia to Ban Entry of Chinese Nationals
The statement from the RBI governor comes at a time when the deadly coronavirus has brought a large part of China to a standstill with the death toll reaching 2004 on Wednesday. Also Read - India to Send Military Aircraft to Evacuate Citizens From Coronavirus-hit Wuhan on February 20
Das also stated that the pharmaceutical and electronic manufacturing sectors, which are largely dependent on China for inputs, may get impacted too.
“It is definitely an issue which needs to be closely monitored by every policymaker whether in India or any other country. Every policymaker, every monetary authority needs to keep a very close watch. So coronavirus issue needs to be closely watched,” he added.
The statement from the RBI governor comes after Sitharaman on Tuesday expressed concern as pharma, chemical and solar equipment makers have been vocal about some disruption due to coronavirus outbreak.
“A similar problem, perhaps on a lower scale, occurred last time during the outbreak of Severe Acute Respiratory Syndrome (SARS) in 2003,” Das said, adding, “The Chinese economy had slowed down by about 1 per cent during that time.”
Saying that the coronavirus outbreak appears to be bigger than SARS, the RBI governor said the coronavirus will definitely have an impact on the global GDP and global trade.
“If the Chinese authorities are able to contain the problem, the impact on the global economy and on India will be minimised,” Das said.
However, he underlined that the critical thing to be watched and monitored now is how quickly Chinese authorities are able to contain the problem.