China’s share in India’s industrial goods imports jump to 30% from 21% in last 15 yrs: GTRI

NEW DELHI : With increasing India’s dependence on Chinese industrial goods like telecom, machinery and electronics, Beijing’s share in New Delhi’s imports of such goods rose to 30 per cent from 21 per cent in the last 15 years, a report said. According to the report by the economic think tank Global Trade Research Initiative (GTRI), the growing trade deficit with China is a cause of concern, and the strategic implications of this dependency are profound, affecting not only economic but also national security dimensions.

From 2019 to 2024, India’s exports to China have stagnated at around USD 16 billion annually, while imports from China have surged from USD 70.3 billion in 2018-19 to over USD 101 billion in 2023-24, resulting in a cumulative trade deficit exceeding USD 387 billion over five years. The Indian government and industries must evaluate and potentially recalibrate their import strategies, fostering more diversified and resilient supply chains, GTRI Founder Ajay Srivastava said.

This is imperative not only to mitigate economic risks but also to bolster domestic industries and reduce dependency on single-country imports, especially from a geopolitical competitor like China, he added. “Over the last 15 years, China’s share in India’s industrial product imports has increased significantly, from 21 per cent to 30 per cent.

“This growth in imports from China has been much faster than India’s overall import growth, with China’s exports to India growing 2.3 times faster than India’s total imports from all other countries,” the report said. In 2023-24, India’s total merchandise imports amounted to USD 677.2 billion, with USD 101.8 billion of that coming from China.