Adequate cushion there for COVID disruptions: Assocham

According to the industry body, Indian industry including the pharmaceutical sector are readying to manage the evolving situation without causing any major impact on the supply chain.

"... Global supply chain is a reality but there are adequate cushions available to deal with temporary disruptions," Assocham's Secretary General Deepak Sood was quoted as saying in a statement.

"Both the Indian government and the industry have been reacting in a pro-active manner, in close coordination with each other, to face any economic, technical or even contractual impact of the Coronavirus on the world economy."

Furthermore, he said that while India imports substantial amount of API (Active Pharmaceutical Ingredients) from China, however, there are several domestic and global firms which have set up API units in India as well.

Consequently, depending upon the evolving situation, they may be encouraged to ramp up their production in India, he said.

On other industries like electronics, he said there are no immediate threats and that there has been an increased focus on domestic production of IT hardware and electronics.

Sood pointed-out that initiative like 'Assemble in India' can also be ramped up to meet demand.

"It is commendable for the government to have clarified that in such events, the companies can invoke clauses like Force Majeure and protect themselve s against any contractual lapses, if any, should a situation so demand," he said.