According to the latest report of the Global Trade Research Initiative (GTRI), Indias imports from China in the fiscal year 2023-2024 broke the $101 billion mark, with a significant increase of about $70 billion compared to the fiscal year 2018-2019. Over the past 15 years, the share of Chinese products in Indias industrial imports has grown from 21% to 30%, a change that not only marks the deepening of the economic relations between the two countries, but also reflects the increased dependency of the Indian market on Chinese-made products.

According to GTRI’s analysis, India’s imports from China have grown at a rate of 2.3 times the rate of its total imports over the past 15 years. This data highlights China’s important position in India’s import market, especially in key industrial sectors such as machinery, chemistry, pharmaceuticals and textiles. In addition, the report also notes that the general public believes that India mainly imports electronics from China, but in fact Chinese products dominate in a number of key industrial sectors.

While India’s exports to China remained at an average of $16 billion a year between 2018-2019 and 2023-2024, the sharp growth in imports highlighted an increase in trade imbalance.This imbalance could have a profound impact on India’s domestic industry, especially in industries that directly compete with Chinese products.

GTRI excluded agricultural products, minerals, petroleum, gemstones and jewelry-like products in its research and focused on analyzing the major industrial goods India imports from China. According to reports, Indias total commodity imports for the fiscal year 2023-2024 amounted to $672.2 billion, of which more than 15 percent came from China, or more than $101 billion. These imports, worth $100 billion, belong to the main industrial product category, further confirming the widespread penetration and key role of Chinese products in the Indian market.

The reasons behind this growth are complex and varied. Chinas manufacturing industry has a competitive advantage in the global market, while Indias rapid economic development and industrialization demand have prompted it to rely on external supply chains, especially in terms of high-end machinery and electronics.In addition, the unresolved geopolitical tensions between China and Indias borders have not stopped the exchanges between the two countries in the economic sphere, indicating that economic interests somewhat outweigh political disputes.

However, India’s dependence on China has also raised concerns, especially in the current context of global supply chain restructuring and diversification of supply chains. For the Indian government and enterprises, balancing imports with promoting domestic industry development and protecting domestic markets from excessive foreign competition will be a major challenge in the future.