India’s imports from China continue to rise as most of the goods sourced from the country go into making finished products that are also exported, the government said.
“Most of the goods imported from China are raw materials, intermediate goods and capital goods, like active pharmaceutical ingredients (API), auto components, electronic parts and assemblies, mobile phone parts, machinery and its parts, etc. which are used for making finished products which are also exported out of India,” Minister of State for Commerce & Industry Jitin Prasada replied in Lok Sabha on Wednesday.
These goods are imported to meet the demand of fast expanding sectors like electronics, pharma, telecom and power, in India. “India’s dependence on imports in these categories is largely due to the gap in domestic supply and demand,” he said.
In Fiscal Year 2024, India’s imports from China reached $101.74 billion, making China India’s top import source and largest trading partner, with bilateral trade totaling $118.4 billion. India’s trade deficit during the fiscal widened to $85 billion.
Replying to a question on the measures that India has taken to reduce India’s trade deficit with China, Prasada highlighted some key initiatives including the Production Linked Incentive (PLI) schemes in 14 critical sectors such as solar PV modules, electronics, pharmaceuticals, active pharmaceuticals ingredients (APIs), white goods and telecom & networking products where there is substantial dependence on imports.
‘The government has also introduced stricter quality standards and measures for quality controls, testing protocols, and mandatory certification to check substandard & poor-quality products in the market and protect consumers’ interest,” he added.