Chinese industrial goods accounted for 30% of India’s 2023-24 imports: GTRI report
29 Apr 2024
China's share in India's industrial goods imports jumped to 30 per cent in 2023-24 from 21 per cent over the 15-year period between 2008-09 and 2023-24, as per a report published by Global Trade Research Initiative (GTRI).
India’s imports from China surged from $70.3 billion in 2018-19 to more than $101 billion in 2023-24 even as India's exports to China stagnated at around $16 billion annually during these years, showing the country’s increasing dependence on Chinese industries despite all talk of `Atmanirbhar Bharat,’ says the report.
Sectors such as electronics, telecom and electrical, machinery, chemical and pharmaceutical inputs, iron, steel and other base metal products, textile and clothing, plastics, automobiles, medical, leather, paper, glass, ships, aircraft, among others, accounted for 98.5 per cent of the $101 billion imports from China, the report points out.
Over the five years between 209 and 2024, India’s cumulative trade deficit with China jumped to over $387 billion from $202 billion, according to the report.
While India’s export of electronics goods surged, its imports of Chinese goods in the areas of telecom, machinery and electronics have increased jumping by 30 per cent, as per the GTRI report.
Out of India’s imports of electronics, telecom and electrical products valued at $67.8 billion in 2023-24, $26.1 billion worth of products came from China.
China accounted for $19 billion or around 39.6 per cent of India’s machinery imports during April-January 2023-24.
China’s share is also expected to grow as Chinese firms operating in India continue to source most of their requirements from their parent firms.
The relaxation in import duty on electric vehicles will lead to large-scale entry of Chinese automakers into India, which will adversely impact domestic EV manufacturers and ancillary firms in the EV value chain space, including battery manufacturing.
Clearly, India failed to diversify its supply sources, which is key to developing a resilient supply chain, which is imperative for reducing the country’s dependence on China, GTRO founder Ajay Srivastava pointed out.
The growing deficit with China, besides economic strain, will have geopolitical implications as well for India, according to the report.
