Chinese imports to India amounted to $55.7 billion, reaffirming China’s position as the largest exporter to the Indian market. Among these imports, consumer electronics remain the most significant, reflecting India’s heavy reliance on Chinese manufacturers for these goods. Despite challenges such as the COVID-19 pandemic, this dependence has persisted, underscoring the critical role of Chinese imports in India’s supply chain. China’s exports to India have grown rapidly over the last 15 years, particularly in sectors such as electronics, telecom, machinery, chemicals, and pharmaceuticals, leading to a significant trade deficit and increasing India’s dependency on Chinese imports. Several factors contribute to this dynamic, including cost-effectiveness, diverse product range, and the established trade relationship between the two nations. While India maintains strong trade ties with countries like the USA and Russia, the volume and variety of imports from China continue to be unmatched.
China accounts for approximately 14% of India’s total imports. While the USA remains India’s largest trading partner, China holds the second position. The key distinction between India’s trade relationships with these two countries lies in the trade balance: India enjoys a trade surplus of $16 billion with the USA, whereas it has a significant trade deficit of $53 billion with China.
Importing products from China to India
Importing products from China to the Indian market is popular among firms looking for cheap and flexible products, making India import a significant amount from China. The process includes navigating several trade laws, analysing market demand and deciding on the most cost-efficient transport method. The importance of raw materials imported from China cannot be overstated, as they impact various Indian industries, including machinery, electronics, telecommunications, and construction. China provides a wide variety of services across India including electronics, textiles and telecommunications products. Importing Chinese products into India provides opportunities, although some thought must be taken. Firstly, ensure you’re registering your International Importer-Exporter Code (IEC), and your passport in international trading. Choose the product that complies with the specifications of India or from an authentic China source.
