India’s increasing dependence on Chinese industrial goods prompts concerns over economic stability.
A recent report by the Global Trade Research Initiative (GTRI) highlights India’s escalating reliance on Chinese industrial products such as telecom, machinery, and electronics. Over the last 15 years, Beijing’s share in New Delhi’s imports of these goods has surged from 21 percent to 30 percent, exacerbating the trade deficit. While India’s exports to China have remained stagnant at around USD 16 billion annually from 2019 to 2024, imports from China have soared to over USD 101 billion in 2023-24 alone, resulting in a cumulative trade deficit exceeding USD 387 billion over five years.
Ajay Srivastava, GTRI founder, emphasises the urgent need for the Indian government and industries to reassess import strategies. He advocates for the development of diversified and resilient supply chains to mitigate economic risks and reduce dependency on single-country imports, particularly from geopolitical competitors like China.
