India's reliance on Chinese imports surges to 30% over the past 15 years

India's Chinese imports: India's increasing dependence on Chinese industrial goods, including telecommunications, machinery, and electronics, has raised concerns, with Beijing's share in New Delhi's imports of such products rising to 30 per cent from 21 per cent over the last 15 years, a report by the economic think tank Global Trade Research Initiative (GTRI) revealed.

The report highlighted a growing trade deficit with China, reaching a cumulative deficit exceeding $387 billion over five years from 2019 to 2024. This trend is alarming, with profound strategic implications impacting not only the economic landscape but also national security dimensions.

Ajay Srivastava, the founder of GTRI, emphasised the urgency for the government and industries to reassess import strategies, advocating for diversified and resilient supply chains. Such measures are essential not only to mitigate economic risks but also to fortify domestic industries and reduce dependency on single-country imports, particularly from a geopolitical competitor like China.

The report underscored that China's share in India's industrial product imports has significantly increased, accounting for 30 per cent of imports in various sectors, compared to just 21 per cent fifteen years ago. Sectors witnessing a substantial rise in dependency on Chinese imports include electronics, telecom, machinery, chemicals, pharmaceuticals, textiles, and automobiles.

Chinese companies' involvement in critical sectors such as energy, telecommunications, transportation, and manufacturing poses challenges for domestic industries. The report warned of accelerated imports as Chinese firms expand their operations in India, potentially impacting domestic auto/EV manufacturers and firms in the EV value chain and battery development space.

Overall, the report calls for concerted efforts to strengthen India's industrial capabilities across various sectors to reduce reliance on Chinese imports and enhance self-sufficiency in strategic industries.

(with PTI inputs)