Parliament Question: Dependency on Chinese Products

GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE LOK SABHA UNSTARRED QUESTION NO. 4224 ANSWERED ON 19/08/2025 DEPENDENCY ON CHINESE PRODUCTS 4224. ADV PRIYA SAROJ Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be pleased to state: (a) the total value of imports from China during FY 2022-23 and FY 2023-24, and the percentage of total imports it represents each year; (b) the top 10 product categories imported from China, with their respective share in India’s total imports under those categories; (c) whether the Government has data on the share of Chinese imports in critical sectors like electronics, pharmaceuticals (APIs), auto components, and solar equipment, if so, the details thereof along with percentage wise data of top 10 categories. (d) whether any sector-wise dependency reduction plan has been formulated to reduce strategic reliance on Chinese – origin products, if so, the details thereof; and (e) the status of trade deficit with China over the past five years, and steps taken to promote Indian alternatives in both industrial and consumer segments? ANSWER वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA) (a) The total value of imports from China during FY 2022-23 and FY 2023-24 was USD 98.50 Bn and USD 101.74 Bn respectively and percentage of these in India’s total imports was 13.76% and 15% respectively. (b) & (c) The top 10 principal commodities imported from China and their share in India’s total imports during FY 2024-25 may be seen at Annexure-I. (d) & (e) Most of the goods imported from China are raw materials, intermediate goods and capital goods like Active Pharmaceutical Ingredients, auto components, electronic parts and assemblies, mobile phone parts, etc which are used for making finished products which are also exported out of India. These goods are imported for meeting the demand of fast expanding sectors like electronics, pharma, telecom and power in India. 1The Government has taken several initiatives to enhance domestic supply and reduce dependency on imports. ‘Make in India’ initiative was launched in September, 2014 to promote India’s manufacturing domain in the world. Presently, ‘Make in India’ 2.0 focuses on 27 sectors implemented across various Ministries/Departments and State Governments. Keeping in view India’s vision of becoming ‘Atmanirbhar’, the Government has launched Production Linked Incentives (PLI) Schemes with financial outlay of Rs. 1.97 lakh crore in 14 key sectors including Electronics, IT hardware, Pharmaceuticals, Bulk Drugs, High- Efficiency Solar PV Modules, Automobiles & Auto Components, White Goods, Telecom and Networking Products to boost domestic manufacturing and reduce reliance on imports. In the electronics sector, the Government has launched several schemes such as the PLI for Large Scale Electronics Manufacturing, PLI for IT hardware, Electronics Manufacturing Clusters (EMC and EMC 2.0) Scheme, and the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS). To further reduce import dependence of components and develop robust component manufacturing ecosystem by attracting investments across the value chain, and increase the share of India's exports in global electronic trade by integrating with the Global Value Chains (GVCs), the Government has launched Electronics Components Manufacturing Scheme (ECMS), with budgetary outlay of Rs. 22,919 crores. In the Pharmaceutical sector, the Government has launched PLI Scheme for promotion of domestic manufacturing of critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs)/Active Pharmaceutical Ingredients (API) in India, also known as the PLI Scheme for Bulk Drugs, with a budgetary outlay of Rs. 6,940 crores. The scheme aims to avoid disruption in supply of critical APIs, by reducing supply disruption risk due to excessive dependence on single source. PLI Scheme for Pharmaceuticals with budgetary outlay of Rs. 15,000 crores have also been launched to enhance India's manufacturing capabilities by increasing investment and production in the sector and contributing to product diversification to high-value goods in the pharmaceutical sector. Further, under the Scheme for Promotion of Bulk Drugs Parks, which has a total budgetary outlay of Rs. 3,000 crore, three parks have been approved and are at various stages of development in the states of Andhra Pradesh, Gujarat and Himachal Pradesh. In the solar sector, the Government has been consistently bringing out policies to promote domestic manufacturing of solar equipment and reduce reliance on imports. The Government is implementing PLI scheme for High Efficiency Solar Photovoltaic Modules, with budgetary outlay of Rs. 24,000 crores, for achieving domestic manufacturing capacity of Giga Watt scale in High Efficiency Solar PV Modules. The Government is also giving preference to ‘Make in India’ in public procurements. Further, the Government has imposed Basic Customs Duty (BCD) on import of solar PV cells, solar PV modules, solar inverters and solar glass. In the auto sector, the Government has notified PLI Scheme for Automobile and Auto Component Industry in India (PLI-Auto) with a budgetary outlay of Rs. 25,938 crores, for 2enhancing India's manufacturing capabilities for Advanced Automotive Technology (AAT) products. The objective of the scheme was to boost domestic manufacturing of AAT products and attract investments in the automotive manufacturing value chain. In addition to above, Government has taken several initiatives under the ‘Ease of Doing Business’ which include Business Reform Action Plan (BRAP), the B-Ready assessment, Trade Connect ePlatform and reducing compliance burden on businesses and citizens. National Logistics Policy and PM Gati Shakti have been launched to reduce the logistics costs and improve the logistics efficiency in the country. PM Gati Shakti also helps in integrated development of multimodal infrastructure for ease of movement of people and goods. The National Industrial Corridor Development Programme (NICDP) is a transformative initiative aimed to create globally competitive manufacturing hubs in India. The Government encourages Indian business establishments to explore alternative suppliers and to diversify their supply chains to reduce dependency on single sources of supply. Also, the Government monitors the surge in imports on a regular basis and takes appropriate action. Further, the Directorate General of Trade Remedies (DGTR) is empowered to initiate and recommend trade remedial actions against unfair trade practices. The initiatives taken by the Government have led to decline in dependency on imports in several sectors. For example, under the PLI Scheme for medical devices, 21 projects have started manufacturing of 54 unique medical devices, which include high end devices such as Linear Accelerator (LINAC), MRI, CT-Scan, Heart Valve, Stent, Dialyzer Machine, C-Arm, Cath Lab, Mammograph, MRI Coils, etc. Further, the PLI Scheme for Large Scale Electronics Manufacturing has significantly impacted Mobile manufacturing sector in India particularly in transforming India from a net importer to a net exporter of mobile phones. The export of mobile phones has increased from Rs. 1,500 cr in 2014-15 to more than Rs. 2 lakh cr in 2024-25. Bharat is now the second largest mobile manufacturing country in the world. In addition, the pharmaceuticals sector has witnessed cumulative sales of Rs.2.66 lakh crore which includes exports of Rs.1.70 lakh crore achieved in the first three years of the scheme. The scheme has contributed to India becoming a net exporter of bulk drugs (2280 cr.) from net importer (-1930 cr.) as was the case in FY 2021-22. It has also resulted in significant reduction in gap between the domestic manufacturing capacity and demand of critical drugs. Trade deficit with China over the past five years can be accessed from website of Department of Commerce i.e.: https://tradestat.commerce.gov.in/ftspcc/ttrade_country_wise ***** 3Annexure-I Annexure-I referred to in reply to Part (b)&(c) of Lok Sabha Unstarred Question No. 4224 for answer on 19/08/2025 Top 10 Principal Commodity Groups imported from China in FY 2024-25 and their share in India’s total imports: (Values in USD Mn) India's total Imports from China's share Sr. PRINCIPAL COMMODITY imports China in India's total No. GROUPS (2024-25) (2024-25) imports (%) ELECTRONICS 1 36804.93 13964.57 37.94 COMPONENTS 2 TELECOM INSTRUMENTS 22338.49 9695.53 43.40 COMPUTER HARDWARE, 3 18541.11 9170.88 49.46 PERIPHERALS INDUSTRIAL MACHINERY 4 18479.82 8360.05 45.24 FOR DAIRY ETC 5 ORGANIC CHEMICALS 16307.28 4827.66 29.60 ELECTRONICS 6 12115.82 4632.28 38.23 INSTRUMENTS ELECTRIC MACHINERY 7 13309.16 4007.66 30.11 AND EQUIPMENT 8 PLASTIC RAW MATERIALS 16447.93 3738.89 22.73 BULK DRUGS, DRUG 9 4637.53 3436.68 74.11 INTERMEDIATES RESIDUAL CHEMICALS 10 12587.44 3296.93 26.19 AND ALLIED PRODUCTS During FY 2024-25, the value of India’s total imports of Auto components/parts was USD 7174.73 Mn and value of India’s imports from China in this category was USD 1912.82 Mn. China’s share in total imports of auto components/parts was 26.66%. (Source: DGCIS) 4