Why in the news?

• India’s imports from China surged to over $101 billion in the fiscal year 2023-24, marking a significant increase from approximately $70 billion recorded in 2018-19.
• The proportion of China’s industrial goods imports to India has risen from 21% to 30% over a span of 15 years, as highlighted in a report by the Global Trade Research Initiative (GTRI).

India’s Import: GTRI study

• The GTRI study revealed that imports from China have grown at a pace 2.3 times faster than India’s overall imports during the 15-year period.
• Contrary to common belief, China has emerged as the top supplier in eight core industrial sectors, encompassing machinery, chemicals, pharmaceuticals, and textiles, among others.
• India is experiencing stagnant exports valued at around $16 billion annually.
• Over a six-year period spanning from 2018-2019 to 2023-24, India’s cumulative trade deficit with China surpassed $387 billion, prompting apprehension among policymakers.

China’s Share of India’s Imports:

• China accounted for 15% of India’s overall imports in 2023-24, with $101.8 billion out of a total of $677.2 billion.
• Sector-wise Contributions:

1. Electronics, Telecom, and Electrical Products: China’s contribution was 38.4% in April-January 2023-24.
2. Clothing: Nearly 42% of India’s textile and clothing imports accounted from China.
3. Machinery Sector: China accounted for 39.6% of India’s overall imports.
4. Chemical and Pharmaceutical Sector: China’s share was 29.2%.
5. Plastics and Related Articles: China provided articles worth $4.8 billion, accounting for 25.8% of total imports in this sector.

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