Thursday 28th, March 2024
canara news

Chinese economic fall may hit India, says Assocham

Published On : 13 Jul 2015   |  Reported By : Courtesy : DHNS   |  Pic On: Photo credit : DHNS


China’s market meltdown has had its impact on other economies, but the worse may not be over, and a contagion may spell a gloom on the Indian commodity markets and exports.

China is the world’s largest consumer and importer of commodities, due to which commodity prices have been hit by the crisis in that country.

Prices of copper and iron ore are at a six-year low, while crude has fallen 10 per cent in a week’s time. The effect of China’s crisis has been witnessed on agricultural commodities as well. India exports iron ore, iron, steel, cotton and castor oil to China on a large scale.
In 2014, China’s economic growth accelerated 7.4 per cent which was its lowest level in 24 years. In 2015, the economy is expected to accelerate below 7 per cent. The low rate of economic growth in China is casting its spell on commodity demand across the world. The world commodity prices have crashed due to low demand.

A recent paper by Industry body Assocham analysed the impact of the problems in China on the Indian economy, and said that it was negative for a host of metal and iron ore producers like SAIL, Tata Steel, NMDC and upstream oil producers.

A sharp fall in iron ore, steel and copper prices has equally hit the Indian manufacturers as any other country in the world, it said.

“Besides, if a bubble-like situation erupts in China, its impact will be seen all around the world to which the Indian economy is too well entrenched. China is the top merchandise trader in the world with over $4.16 trillion worth of trade, followed by the US with $3.9 trillion,” it said.

Automobile exporters and manufacturers, especially Tata Motors are expected to suffer too as China is its fastest growing market, especially for JLR, and the company was investing in the market to drive future growth.

 







More News

Sensex, Nifty fall 1% as crude oil prices surge
Sensex, Nifty fall 1% as crude oil prices surge
Aamir Khan calls 'Thugs of Hindostan' role one of his toughest
Aamir Khan calls 'Thugs of Hindostan' role one of his toughest
Fuel prices continue to fall as global crude rates ease
Fuel prices continue to fall as global crude rates ease

Write your Comments

Disclaimer: Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. canaranews.com will not be responsible for any defamatory message posted under this article.

Please note that under 66A of the IT Act, sending offensive or menacing messages through electronic communication service and sending false messages to cheat, mislead or deceive people or to cause annoyance to them is punishable. It is obligatory on CANARANEWS to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using canaranews will be purely at your own risk, and in no way will canaranews.com be held responsible.