India’s imports from China set to surpass $101 billion mark by Feb 2025

India's imports from China are on track to surpass the $100 billion mark by February 2025, with projections indicating that total imports for the fiscal year 2024-25 (FY25) could exceed the previous record of $101.73 billion set in 2023-24, according to NewsBytes.

This surge is contributing to a growing trade deficit, which reached $83.52 billion in the first 10 months of FY25, nearly matching the total deficit of $85.06 billion for the entire 2023-24 fiscal year.

In 2023, bilateral trade between India and China amounted to $115.82 billion, with India's imports from China at $99.59 billion and exports to China at $16.23 billion, resulting in a trade deficit of $83.36 billion.

The primary imports from China include electrical and electronic equipment, machinery, organic chemicals, and plastics.

This growing trade imbalance has raised concerns among policymakers and industry leaders, prompting discussions on strategies to boost domestic production and reduce dependency on Chinese imports.

India's imports from China are heading for a new record in the fiscal year 2024-25 (FY25). From April 2024 to January 2025, imports reached $95.01 billion, a 10.6% increase from $85.91 billion during the same period in 2024. January 2025 alone saw imports of $10.48 billion, marking a 17% year-on-year growth. This surge suggests that total imports from China could surpass the previous record of $101.73 billion set in the 2023-24 financial year.

The primary imports from China include electrical and electronic equipment, machinery, organic chemicals, and plastics. This dependency has raised concerns among policymakers and industry leaders, prompting discussions on strategies to boost domestic production and reduce reliance on Chinese imports.

In response to the widening trade deficit, the Indian government is exploring measures to enhance self-reliance in key sectors. Initiatives under the "Atmanirbhar Bharat" (Self-Reliant India) campaign aim to promote domestic manufacturing and diversify import sources. However, achieving a significant reduction in dependency on Chinese imports remains a complex challenge, given the competitive pricing and established supply chains associated with Chinese goods.

The Indo-China trade balance continues to tilt in favour of Beijing as Chinese imports grow while India’s exports contract, leading to a widening trade deficit. The deficit occurs because India imports more from China than it exports to the neighbouring country.

As the fiscal year progresses, monitoring trade patterns and implementing effective policy measures will be crucial in addressing the trade imbalance and fostering sustainable economic growth.