**Executive Summary**
This document is an answer given in Lok Sabha on 10/02/2026, concerning India's manufacturing sector under the "Atmanirbhar Bharat" initiative, focusing on trade with China since 2014. It addresses import-export balance, key dependencies, government procurement, and steps taken to reduce reliance on Chinese imports. No specific action items or deadlines are listed for individual stakeholders.
**Key Points / Main Content**
* **India-China Trade Statistics:**
* Presents the total value of India's trade with China (imports and exports) each year from 2014-15 to 2025-26 (April-December) in USD billion.
* Provides the percentage share of India's total trade with China in India's global trade for the same period.
* India's exports to China in FY 2025-26 (April-December) have shown growth of 36.68% over the corresponding period in FY 2024-25.
* **Key Import Commodities:**
* Identifies major commodities imported from China, including electronics components, telecom instruments, computer hardware and peripherals, industrial machinery, organic chemicals, and electric machinery.
* Notes that many imports are capital, intermediate goods, and raw materials used in the production of finished goods that are then exported.
* **Government Procurement:**
* Highlights the "Public Procurement (Preference to Make in India) Order 2017," aimed at promoting domestic industry.
* Specifies that unreasonable exclusion of 'Class-l local supplier’/ ‘Class-II local supplier' from bidding process and restrictive specifications are discouraged.
* Global Tender Enquiries (GTE) are restricted for tenders up to Rs. 200 Crores.
* Bidders from countries sharing a land border with India must be registered to participate in procurement.
* No central record is kept regarding specific procurement of goods, parts, or services from Chinese companies by Government entities.
* **Initiatives to Reduce Import Dependence:**
* Mentions the "Make in India" initiative to promote domestic manufacturing.
* Describes Production Linked Incentives (PLI) Schemes in 14 key sectors.
* Semicon India Programme was launched for the development of semiconductors and display manufacturing ecosystem.
* The Government encourages Indian businesses to diversify their supply chains.
* The Directorate General of Trade Remedies (DGTR) is empowered to initiate trade remedial actions against unfair trade practices.
* **Import Trends:**
* Notes a decline in mobile phone imports from Rs 48,609 cr in 2014-15 to Rs 3,710 cr in 2024-25, and a rise in export from Rs. 1,566 cr to Rs. 2,05,017 cr during the same period.
* Highlights the decline in imports from China in 2024-25 in fertilizers, residual chemicals, iron, steel and man-made yarn.
**Impact Analysis**
**Government of India (Ministries/Departments/PSUs)**
* **Impact:** Required to adhere to the "Public Procurement (Preference to Make in India) Order 2017" and GTE restrictions. Encouraged to support the "Make in India" initiative and reduce dependency on single sources of supply.
* **Action Required:** Implement the procurement order, prioritize domestic suppliers where feasible, and diversify supply chains.
**Indian Manufacturers/Domestic Industry**
* **Impact:** Benefit from the "Make in India" initiative, PLI schemes, and preference in public procurement.
* **Action Required:** Enhance production capacity, improve product quality, and explore opportunities under the PLI schemes.
**Indian Businesses**
* **Impact:** Encouraged to explore alternative suppliers and diversify supply chains.
* **Action Required:** Explore alternative suppliers, diversify supply chains, and remain competitive in the market.
Key Entities Referenced
Atmanirbhar Bharat: An initiative of the Government of India aimed at promoting domestic manufacturing and reducing dependence on imports.
Ministry of Commerce and Industry: The Indian government ministry responsible for formulating and implementing policies related to commerce, industry, and trade.
Make in India: An initiative launched by the Government of India to encourage companies to manufacture their products in India.
Public Procurement (Preference to Make in India) Order 2017: Order to promote domestic industry in public procurement of Goods, Works and Services.
China: Country from which India imports goods and to which it exports, central to the policy question of import dependence.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
LOK SABHA
UNSTARRED QUESTION NO.1646
ANSWERED ON 10/02/2026
MANUFACTURING UNDER ATMANIRBHAR BHARAT
1646. DEEPENDER SINGH HOODA
Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be
pleased to state:
(a) the total value of India’s imports from and exports to China each year since
2014, and the percentage of total trade this constitutes in India’s overall import-
export balance;
(b) the key product categories and sectors where India remains most dependent
on Chinese imports, including electronics, pharmaceuticals, solar equipment,
and telecom;
(c) whether any Government Ministries, Departments, or Public Sector
Undertakings have directly procured goods, parts, or services from Chinese
companies since 2014, and if so, the details thereof;
(d) the measures taken to reduce dependence on Chinese imports and promote
domestic manufacturing under the “Atmanirbhar Bharat” initiative; and
(e) the targets and timelines fixed, if any, for indigenization or diversification of such
imports?
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 India’s imports from and exports to China each year since 2014,
and the percentage of total trade this constitutes in India’s overall import-export
balance is as under:
(values in USD billion)
India’s total trade % share of India’s total trade with
Year with China (imports China in India's global trade
and exports) (imports and exports)
2014-15 72.34 9.54
2015-16 70.72 10.99
2016-17 71.45 10.82
2017-18 89.71 11.66
2018-19 87.07 10.31
2019-20 81.87 10.39
12020-21 86.4 12.59
2021-22 115.83 11.19
2022-23 113.82 9.75
2023-24 118.41 10.62
2024-25 127.71 11.02
2025-26 (April-Dec) 110.2 12.12
(Source: DGCIS)
It may be noted that India’s exports to China in FY 2025-26 (April-December) have
shown growth of 36.68% over corresponding period in FY 2024-25.
(b) The major principal commodities imported from China are electronics
components, telecom instruments, computer hardware and peripherals, Industrial
machinery for dairy etc, organic chemicals, electronics instruments, electric machinery
and equipment etc.
Most of the goods imported from China are 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. The rise in import of electronic components, computer hardware and
peripherals, telephone components, etc. can be attributed to transformation of India
into a digitally empowered society and a knowledge economy.
(c) The Government has issued ‘Public Procurement (Preference to Make in India)
Order 2017’ (PPP-MII Order), to promote domestic industry in public procurement
of Goods, Works and Services. The Order is applicable to all Ministries or Departments
or attached or subordinate Offices or autonomous body controlled by the Government
of India and includes Government companies as defined in the Companies Act. The
Order mandates that eligibility conditions, including on matters like turnover,
production capability and financial strength do not result in unreasonable exclusion of
‘Class-I local supplier’/ ‘Class-II local supplier’ from bidding process. Also, specifying
foreign certifications/ unreasonable technical specifications/brands/ models in the bid
document is considered restrictive and discriminatory practice against local suppliers.
Further, in order to promote self-reliance, make in India and Micro, Small & Medium
Enterprises, Government of India (Ministry of Finance) has mandated that no Global
Tender Enquiry (GTE) shall be invited for tenders upto Rs. 200 Crores or such limits,
as may be prescribed from time to time. Further, the Government has issued
guidelines that any bidder from a country which shares a land border with India will be
eligible to bid in any procurement whether of goods, services or works only if the bidder
is registered with the competent authority.
No details of data on procurement of goods, parts, or services by Government
Ministries, Departments or PSUs from the Chinese companies are maintained
centrally by Government of India.
(d) to (e): To enhance domestic supply and reduce dependency on imports, the
Government has taken several initiatives. ‘Make in India’ initiative was launched on 25th
2September, 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.
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, 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 indigenization and strengthening of manufacturing capacity is a continuous process
and the Government remains committed to ensuring that domestic industry remain
competitive and resilient.
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