Explained: Will Wuhan virus or 2019-nCoV impact Indian economy
New Delhi, Jan 27: The outbreak of the Coronavirus has so far killed 81 people in China and country's National Health Commission reporting 2,744 confirmed cases. While, the Indian Health ministry has confirmed that over 29,700 passengers from 137 flights were screened till Sunday for novel coronavirus infection at seven major airports in the country but no positive case was detected.
However, the situation is expected to get worse with numbers rising before it gets better.
The latest reports suggested, the coronavirus, which is from the same family as Severe Acute Respiratory Syndrome (SARS), has spread its wings worldwide. With Canada became the 16th country to have reported cases, the other countries which have been affected so far include Australia, France, Japan, Nepal, Singapore, South Korea, Taiwan, Thailand, United States, Vietnam, China, and Hong Kong.
According to the study, the novel Chinese coronavirus is likely resided in snakes before being transmitted to humans.
As per a report by the World Health Organisation (WHO), 8,098 people in 32 countries were affected by SARS with 775 fatalities.
Meanwhile, China has locked down more than 10 cities affected by the virus stopping all forms of public transportation in and out of cities with a high occurrence of the outbreak.
China has also banned domestic group tours and followed that up a day later by stopping international tourist groups from departing from Monday, January 27.
It is now to see how the world's second-largest economy will have a knock-on effect on the global economy, especially the Indian economy.
The first and the foremost, the tourism sector will be affected. The tourism sector in Singapore, Thailand, and Hong Kong are the most vulnerable.
According to the Indian Ministry of Tourism, China is India's 8th largest source of foreign visitors. The Chinese tourists contribute about $ 760 million to the Indian economy.
Secondly, the consumer confidence could also be affected. A DBS Group research report suggested that the 2002 SARS outbreak caused a sharp decline in travel, tourism, and commerce in China and other countries like- Hong Kong, Singapore, and Taiwan.
Indian exports to China have been growing in recent years. Based on the Indian Department of Commerce statistics, China is among the top three countries India exports to.
However, the outbreak of the virus, forced people to stay at home for a prolonged period in affected cities in China, and experts believes that this may lead to decline the retail consumption and demand for raw material for manufacturing.
SARS, which earlier had killed 349 people in mainland China and another 299 in Hong Kong between 2002 and 2003. The virus of atypical pneumonia, better known as SARS, had severely disrupted the economies of Asian countries then.
SARS had caused a large demand shock in East Asia, particularly to the consumption of services, especially travel.
In 2003, the China witnessed fall of foreign tourism revenue as much as 60 per cent. Economists have also estimated that SARS was responsible for a 1-2 per cent dent in China's economic growth, and 0.5 per cent across Southeast Asia in 2013.
Now, it is to see that how fast normality can be restored, and how the world would reacts to curb the outbreak of the deadly disease.