NEW DELHI: The increase in imports from China may largely be attributable to influx of computers, telecom equipment and their components, with chemicals used for medicines seen to have declined.
During April-Aug, Chinese imports into India rose almost 11% to $46.6 billion, from $42 billion in the corresponding period last year. Within this, an increase of $1.5 billion is on account of higher shipments of computers and machinery and another $3.2 billion is due to more electrical machinery, electronics and telecom goods entering India, data sourced from the commerce department showed (see graphic).
According to think tank GTRI, these 10 groups accounted for 83.8% of India’s imports from China and saw an average 14.7% growth during April-Aug 2024. Just three product segments – electronics, machinery and organic chemicals – account for two-thirds of India’s imports from its neighbour.
In April-Aug 2024, India’s trade deficit with China has widened to $40.8 billion, as against $35.7 billion a year ago, as imports went up and exports fell 8% to $6.3 billion.
Among specific products, integrated circuits, micro-assemblies and memories grew 49% to $3.5 billion, according to GTRI data.
Mobile components and phones as a segment saw a surge of 63% to $2.7 billion, with bulk of it seen to be on account of parts going into manufacture of phones in India. As a category, smartphone imports from China shrank to $76 million during the first five months of the current fiscal year, compared with $187 million in the year-ago period.
There was, however, no stopping of computer and laptop imports, which went up 13.5% to $2.5 billion at a time when govt is again reviewing the import regime with an eye on domestic imports and most of the goods coming from China. Similarly, solar modules, cells and panel imports were seen to be 50% higher at $1.1 billion.
There was good news on antibiotics, whose imports stayed flat at just over $700 million, while lithium ion cells saw a decline of 20% to $837 million. Electronics and medicines have been among two product segments where govt has sought to reduce reliance on Chinese imports.