Shenzhen Lockdown likely to hit Indian Industries.

Due to the increase in the number of Covid cases, Chinese authorities have imposed a lockdown in Shenzhen city. Shenzhen is China’s tech and manufacturing hub. The lockdown imposed in Shenzhen will eventually disrupt the supply chains and availability of parts. This is likely to affect India's steel companies, electronics assemblers, and carmakers. The cost of Transportation is also expected to increase. Navkendar Singh, research director, IDC, a global provider of market intelligence said: "There will be a definite impact if there is a shutdown for more than three weeks. While there is sufficient stock for April and May, the impact, if Shenzhen doesn't open up, will be felt from June." Indian electronic industry imports a significant amount of parts from China’s Shenzen. Mr. SIngh said that the lockdown coupled with the ongoing conflict of Russia with Ukraine will disrupt many industries in India. Ravi G Bhatia, president of automotive consulting firm JATO Dynamics, warned of a "big supply impact" due to the Shenzhen closure. A top executive at an Indian steelmaker said: "Things are going to get difficult in the next quarter. However, we are better off as we tried to cut down on any trade/input from China or the Shenzhen port."