the outlook for the automotive industry remains weak fitch solutions said forecasting that the total vehicle demand would remain weak over the coming months which should also see production remain in contraction auto industry contributes 75 per cent to the total gdp and accounts for half of the manufacturing gdp on the external front supply chain disruptions due to the covid19 outbreak which began in china will also severely curtail manufacturing activity across automotive and electronics due to a shortage of parts the coronavirus outbreak in china has prompted the chinese authorities to implement varying degrees of lockdowns on many cities nationwide extended factory work stoppages after the lunar new year holiday in january domestic restrictions travel and labour shortages even as the chinese government attempts to get factories to resume operations have severely disrupted supply lines across the world it said china supplies between 1030 per cent of automotive components used in indias automotive manufacturing with the proportion supplied being two to three times higher for the electric vehicle segment for the indian electronics manufacturing sector china accounts for 75 per cent of the total value of components used in televisions and 85 per cent in smartphones supplying parts from mobile displays printed circuit boards memory and led chips to air conditioner compressors and washing machine motors also services 52 per cent of gdp growth will also come under intense headwinds over the near term owing to likely work stoppages in manufacturing following a lack of inputs we forecast real gdp growth to recover slightly to 54 per cent in fy202021 with the pickup to be broadbased our forecast assumes that the covid19 outbreak will be contained by h1fy202021 although we stress that there remains significant downside risks to this forecast as there is still limited visibility on the virus spread in developing markets fitch solutions said expecting agriculture to benefit from strong fiscal support announced during the fy202021 union budget it said a normal monsoon as forecast by skymet in january should also see a significant improvement in the 2020 summer harvest versus 2019 a likely ramping up of manufacturing activity to clear backlogged export orders would also support stronger growth in the sector read alsoindias gdp growth slips to 47 in december quarterwith gdp growth at 7yr low finmin says slowdown has bottomed out pti published on mar 2 2020 at 0155 pm ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest insights analysis download etauto app get realtime updates save your favourite articles scan to download app economic growth coronavirus gdp growth fitch solutions fitch growth