Finance minister Nirmala Sitharaman allays fears of price rise due to coronavirus outbreak

Finance minister Nirmala Sitharaman has allayed fears of any price rise in short term due to supply disruption from China on account of Coronavirus outbreak.

“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.

Sitharaman was addressing the media after a meeting with industry and trade associations to assess the impact of the virus outbreak on the businesses. The minister assured that there is no shortage of raw material with industries as of now.

The finance minister said that a meeting of the concerned secretaries will be held tomorrow and she will then announce measures to deal with the situation in consultation with the Prime Minister’s Office.

She 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.

Sectors like pharma and electronics are worst hit due to the outbreak in China as it has affected the supply of essential raw materials from the country. The supply disruption comes at a time when the economy is experiencing stress and inflation is on the way up.

With inputs from PTI


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