Viral fear

The outbreak of coronavirus in China is also bad news for the Indian economy, just like the rest of the world

Published 4 years ago on Feb 13, 2020 1 minute Read

World’s leading manufacturer has been struck with a calamity as it reels under the impact of COVID-19, commonly known as the new coronavirus. And the domino effect is so large that the rest of the world also stands to be affected in more than one way. There has been a dip in the number of tourists coming in from China, who stand among the top 10 international spenders in India. “Despite it being marginal, FTA (foreign tourist arrivals) share from China has been increasing for the past few years. Therefore, the Indian tourism industry is expected to be negatively impacted during 2020,” CARE Ratings said in its report. According to a media report, Indian tour operators are expecting a blow of about $500 million due to cancellations from tourists from China. If it continues for the rest of the year, the estimated cost will rise four-fold. Another major impact on the Indian economy will be the reduction in box office collection. The dragon nation is a huge market for Bollywood where movies such as Hindi Medium and Secret Superstar made 2x to 10x more than they made in India. But, China has shut close to 70,000 theatres to contain the spread of the virus. India is already reeling from an economic slowdown and the virus scare could not have come at a worse time for the country.