According to the think tank Global Trade Research Initiative (GTRI), India's bilateral trade with China reached at $118.4 billion in the fiscal year 2024.
- China replaced the United States (US) which was India’s top trading partner during FY22 and FY23.
- GTRI’s Report also highlighted that Between FY19 and FY24, India’s exports to China witnessed a marginal decline in exports by 0.6%, while imports from China surged by 44.7 %.
Concerns related to rising import Dependence on China
- National Security: Trade can be used as a tool to exert political pressure on India or advance its strategic interests.
- It complicates efforts to address border disputes effectively.
- Reliance on Chinese technology and equipment in critical sectors such as telecom will make more vulnerable to cyber warfare.
- China’s share in India's electronics sector import (including telecom) is about 43.9%.
- Strategic autonomy: Constrains India’s ability to counter Chinese influence in neighbourhood (e.g. South Asia and Indian Ocean region).
- Supply chain vulnerability: India’s pharmaceutical sector is highly dependent on China’s Active Pharmaceutical Ingredients (APIs).
- Other: Stifle the growth of domestic industries as they are not able to compete with low-cost import, etc.
Initiatives taken to reduce Dependency on China
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