Why in News
India’s imports from China crossed $101 billion in 2023-24 from about $70 billion in 2018-19, and the country’s share of India’s industrial goods imports has risen from 21% to 30% over 15 years, says a report by the Global Trade Research Initiative (GTRI) which reckoned that Chinese imports will rise sharply in coming years
Goods imports from China have risen 2.3 times faster than India’s total imports over 15 years,
China is the top supplier in eight major industrial sectors, including machinery, chemicals, pharmaceuticals, and textiles, electronics sector.
Major imports
India’s total merchandise imports stood at $677.2 billion in 2023-24, of which 15% or $101.8 billion worth goods were sourced from China.
Almost 42% of India’s textile and clothing imports and 40% of its machinery imports in the period came from China, while the number was 38.4% for electronics, telecom and electrical products.
China also accounted for 29.2% of chemicals and pharmaceuticals imports into India, 25.8% of plastic product imports and 23.3% of automobile sector inbound shipments.
A lower dependence on China was seen in the case of iron, steel and base metal imports, with just a 17.6% share of inflows coming from the nation.
Trade deficit concern
Growing trade deficit with China is a cause of concern
Between 2018-19 and 2023-24, India’s exports to China have stagnated around $16 billion annually while imports have surged, resulting in a cumulative trade deficit exceeding $387 billion over six years
COMMENTS