Overview: How Coronavirus is Impacting Indian Banks and Importation.

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The coronavirus or COVID-19 has already claimed more than 10,000 lives around the world. The disease originated from China, but it has spread across the world, especially in Europe. India has also recorded a rise in coronavirus cases over the past few days, with the total number of cases crossing 200 as of 21st March 2020.

The disease has proved to be a major disruption for a range of industries and business activities alike. In India, the pandemic has proved to be particularly harmful to the growth prospects of industries like banking and international trade

This blog looks at the ways in which the Indian banking and importation sectors have been impacted by the pandemic

Impact on Indian Banks

The operations and strategic initiatives of Indian banks have been severely disrupted by the coronavirus

For example, Axis Bank and Deutsche Bank have already announced that they are invoking business continuity plans that are meant for emergencies

Impact on Importation and Related Activities

In comparison to the banking sector, the importation industry has fared slightly better against the pandemic. According to experts, India’s major imports come in the form of fuel and jewelry. These two sectors are relatively safe until now because of strong fundamentals and high demand. However, the importation sector could face major challenges in the coming weeks, especially if the pandemic continues to spread far and wide

Another issue is that various importers are engaged in business with China, and they are already facing delays and postponements. The major types of imports that are being impacted by the crisis include electrical machinery, organic chemicals, mechanical appliances, optical & surgical instruments, and plastics

The pharmaceutical imports from China are also being impacted significantly by the coronavirus. According to estimates, almost 85% of the total pharma imports coming into India are sourced from China. Various Chinese factories have been shut due to the pandemic, and this is piling on the pressure on Indian importers

In particular, imports from the provinces of Hubei and Wuhan are being slowed down by the pandemic.


During these challenging times, importers can often look to avail help from external sources. Institutions such as Euro Exim Bank offer customized support in the form of financial instruments and bespoke trade advisory services. Euro Exim Bank offers useful financial instruments such as Bank Guarantees and Letters of Credit (LCs). Further information about Euro Exim Bank and its key product offerings is available here.






We deploy the latest technology to ensure uninterrupted payment processing and issuance of trade finance instruments from a single point within a shorter period

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