Around 14 percent of India’s total imports come from China. Electrical machinery, cell phones, heavy machinery, telecom, power, plastic toys, crucial pharma ingredients, furniture, pharma, fertilizer, food, and textiles are among the items imported from China by India.
During the period from April 2019 to February 2020, India purchased items worth $62.4 billion from China. As we all know, the US is India’s biggest commercial partner, followed by China.
The main difference between India’s trade with the US and India’s trade with China is that India has a trade surplus with the US of 16 billion dollars, whereas China has a trade deficit of 53 billion dollars in 2018-19.
Chemicals, automotive components, consumer electronics, and medicines make up approximately 13.7 percent of India’s imports from China.
In 2018-19, India’s trade with China reached 87.07 billion dollars. In 2018-19, Indian imports from China were worth Usd 70.32 billion, while exports to China reached only US$16.75 billion. As a result, India’s trade imbalance with China was 53.57 billion dollars.
Electronic items are the most commonly imported items from China by India. During 2018-19, its total imported values were US$ 20.6 billion, with machinery costing 13.4 billion dollars, organic chemicals costing 8.6 billion dollars, and plastic products costing 2.7 billion dollars.
As a result of the above, China made up almost 14% of India’s total imports. Since 2017, the most imported item from China has been electrical machinery.
1. If imports fall, the price of many imported commodities may rise, resulting in higher inflation in the economy.
2. If the supply of raw materials is interrupted, many local goods may eventually suffer.
3. The most vulnerable categories are pharmaceuticals and electronics, which may see significant drops in production due to a shortage of materials required.
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