Covid fears in China may have cascading impact on India's exports, imports

There is a looming fear among exporters of further deceleration in shipments to China, amid a fresh spike in the number of Covid-19 cases in the neighbouring country.

Any massive or large-scale lockdown there may have a cascading impact on India’s exports, as well as imports. The sectors at risk, as far as imports are concerned, according to trade bodies, include pharmaceuticals, automobile components, and electronic goods and parts.

The importance of China as India’s top trading partner cannot be understated.

During the first seven months of the current financial year, China was India’s second-largest trading partner, and the largest