Parliament Question: Rising imports from China and strategic trade imbalance

GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE RAJYA SABHA UNSTARRED QUESTION NO. 2447 ANSWERED ON 13/03/2026 RISING IMPORTS FROM CHINA AND STRATEGIC TRADE IMBALANCE 2447. SHRI RANDEEP SINGH SURJEWALA Will the Minister of COMMERCE AND INDUSTRY be pleased to state: (a) whether it is a fact that India’s imports from China have continued to rise over the past decade, even as manufacturing and import substitution goals were pursued; (b) the year-wise volume and value of imports from China and exports to China during the last five years, with major product categories identified; and (c) the assessment of the economic and strategic implications of such growing trade imbalance and the corrective measures taken to strengthen domestic industry and diversify import sources? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA) (a) to (c): India’s imports from China had increased from USD 7.10 billion in 2004- 05 to USD 51.03 billion in 2013-14, a rise of 618.73%, whereas during the period 2014-15 to 2024-25, these increased from USD 60.41 billion to USD 113.46 billion, a rise of 87.81%. Further, during the current financial year (2025-26), India’s exports to China have shown growth of 38.31% (April-January) over corresponding period in FY 2024-25 while India’s imports from China during this period has increased by 13.82% only. This indicate that the growth of India’s imports from China has slowed over time, while India’s exports to China are growing faster than imports in the current financial year (2025-26). The details of India’s year-wise volume and value of imports from China and exports to China during the last five years can be accessed from website of Department of Commerce i.e. https://tradestat.commerce.gov.in/meidb/country_wise_all_commodities_import and https://tradestat.commerce.gov.in/meidb/country_wise_all_commodities_export respectively. In this era of globalization, Global Value Chains have become increasingly influential in determining international trade as well as growth opportunities. As India is increasingly integrating with Global Value Chains, imports matter as much as exports for successful GVC integration. India’s imports from China have risen largely due to India’s growing demand for capital goods, intermediate goods and raw materials 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. At the same time, the Government of India has been pursuing initiatives such as the Production Linked Incentive (PLI) Scheme, Make in India and Atmanirbhar Bharat Abhiyan to strengthen domestic manufacturing capacity and reduce critical import dependencies. 1‘Make in India’ initiative was launched on 25th 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 like electronics, pharmaceuticals, white goods, telecom and Networking products, High- Efficiency Solar PV Modules, etc., where there is a substantial dependency on imports. For development of semiconductors and display manufacturing ecosystem, the Government has approved Semicon India Programme with financial outlay of Rs. 76,000 crores. Several initiatives have been taken under the ‘Ease of Doing Business’ which include Business Reform Action Plan (BRAP), the B-Ready assessment, Jan Vishwas 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 initiatives taken by the Government have led to decline in dependency on imports in several sectors. For example, the import of mobile phones has decreased from Rs 48,609 cr in 2014-15 to Rs 3,710 cr in 2024-25. On the other hand, the export of mobile phones has increased from Rs. 1,566 cr in 2014-15 to more than Rs. 2,05,017 cr in 2024-25. In 2024–25, a decline in imports from China was observed across several sectors compared to the previous year. For example, imports fell sharply in fertilizers (61.4%), followed by residual chemicals and allied products (19.7%), iron and steel (10.3%), and man-made yarn (9.5%). The Government encourages Indian business establishments to explore alternative suppliers and to diversify their supply chains to reduce dependency on single sources of supply. The Government has concluded trade agreements with key economic partners and these are expected to diversify imports sources and export destinations and integrate Indian businesses into global value chains. 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 Government remains committed to ensuring that domestic industries remain competitive and resilient. ***** 2