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Exports

China Dominates Indian Import Baskets Across Virtually Every Industrial Category

Strategic Insights

— 1 min read

China's decision to ease restrictions on exports of rare-earth minerals and fertilizers to India is a welcome development, but India must take steps to reduce its dependence on its neighboring country, which runs a massive $100 billion trade deficit. According to the Global Trade Research Initiative (GTRI), China's dominance over India's import landscape has widened significantly between 2014 and 2024. India's imports from China span across various industrial categories, including pharmaceuticals, electronics, construction materials, renewable energy, and consumer goods.

Key Takeaways:

  • China's share in India's telecom and electronics imports reached 57.2 per cent between 2014 and 2024, while machinery and hardware accounted for 44 per cent.
  • Chemicals and pharmaceuticals accounted for 28.3 per cent of India's imports from China during the same period.
  • India relies heavily on China for essential products, including antibiotics (97.7 per cent of erythromycin needs), electronics (96.8 per cent of silicon wafers and 86 per cent of flat panel displays), and renewable energy (82.7 per cent of solar cells and 75.2 per cent of lithium-ion batteries).
  • China dominates the Indian market for everyday products such as laptops (80.5 per cent share), embroidery machinery (91.4 per cent), and viscose yarn (98.9 per cent).
  • The GTRI emphasizes the need for India to build strength at home by cutting dependence on Chinese imports, investing in deep manufacturing, and becoming a true product nation.

Statistics:

  • India's trade deficit with China stood at $100 billion.
  • Between 2014 and 2024, China's share in India's telecom and electronics imports reached 57.2 per cent.
  • India's machinery and hardware imports from China accounted for 44 per cent during the same period.
  • 97.7 per cent of India's erythromycin needs are supplied by China.
  • China controls 96.8 per cent of silicon wafers and 86 per cent of flat panel displays in India.
  • 82.7 per cent of solar cells and 75.2 per cent of lithium-ion batteries used in India come from China.

Sources:

  • Global Trade Research Initiative (GTRI)
  • Accord Fintech
  • Contify.com

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