Coronavirus Impact: No Concerns About Price Rise So Far, Says FM Nirmala Sitharaman

Nirmala Sitharaman said she would hold a meeting with the secretaires of different ministries on Wednesday and then announce steps to deal with the situation in consultation with the Prime Minister's Office (PMO).

Nirmala Sitharaman addresses the media after a meeting with industry and other bodies on contextual challenges and opportunities in supply chain of exports and imports. (Image: PTI)

New Delhi: Finance Minister Nirmala Sitharaman on Tuesday said that the Indian government will soon announce measures to deal with the impact of deadly Coronavirus outbreak on the domestic industry and the economy. The minister's statement came after a comprehensive consultation on the effects of the Coronavirus in a review meeting of the Ministry of Finance in the national capital. Sitharaman said she would hold a meeting with the secretaires of different ministries on Wednesday and then announce steps to deal with the situation in consultation with the Prime Minister's Office (PMO). "There are no concerns about price rise so far due to Coronavirus," she said, adding it is too early to talk about the impact of Covid-19 outbreak on the Make in India initiative.

H’ble FM @nsitharaman addressing media post the interactive session with stakeholders on Contextual Challenges & Opportunities in supply chain of exports & imports with a special focus on probable multisectoral response to the impact of the Coronavirus situation. @FinMinIndia pic.twitter.com/WiDsZr346l

— DFS (@DFS_India) February 18, 2020

The Finance Minister also said there were no reports of shortage of medicines or medical equipment, instead the pharma industry is asking for lifting of ban on exports of certain items. However, there could be some disruptions in supplies and concerns have been expressed by the representative of pharma, solar and chemical industries, she said. A recent report stated that novel coronavirus outbreak in China is likely to impact India's electronics and chemical sectors. The report said that chemicals and related sectors like pharmaceuticals, as well as electronics and electrical machinery are 'high risk' sectors after the outbreak of the disease. ALSO WATCH | Why China Is Arresting Its Own People Amid COVID-19 Outbreak? India imports the majority of electronic products from China and exports chemicals and pharmaceutical products to that country. During today's meeting with FM Sitharaman, pharma companies urged the government to consider airlifting of API supplies from China, in order to avoid any shortage of pharma manufacturing and availability of drugs. However, speaking on the impact of the deadly disease on country's economy, FM Sitharaman said that there are no concerns about the price rise so far. The meeting was attended by senior officials from Central Government Ministries and Departments including Customs and representatives from various sectors. Leaders from FICCI, CII, ASSOCHAM also attended it. The Confederation of Indian Industry (CII) has recently said in a report that India along with other countries require to have strategies for "minimising risks and managing the situation". The report also pointed out that the outbreak of Covid-19 in China is expected to have a significant impact on global economy.

Participants interacting with FM Smt. @nsitharaman at special interactive session on Contextual challenges & opportunities in supply chain of export and imports today in New Delhi.@nsitharamanoffc pic.twitter.com/OR9rYZTa4F

— Ministry of Finance (@FinMinIndia) February 18, 2020

Several business experts and entrepreneurs have urged government to cut import duties on antibiotic drugs, mobile parts and other items as the outbreak of the Coronavirus has disrupted supplies. Chinese health authority on Tuesday said it received reports of 1,886 new confirmed cases of novel Coronavirus infection and 98 deaths on Monday from 31 provincial-level regions and the Xinjiang Production and Construction Corps. The overall death toll in the outbreak surged past 1,800 as off now.