China remained India’s largest supplier of imports in the fiscal year that ended on March 31, with shipments increasing 4.16 percent to $98.51 billion, but seeing a decline in its percentage of total shipments.
According to figures issued by the commerce ministry, India’s trade imbalance with China expanded in FY23, driven by an increase in imports and a decrease in exports. Exports from India to China fell 28% to $15.3 billion. From $72.9 billion in FY22, the trade imbalance increased to $77.6 billion in FY23.
The information is released amid ongoing worries about dependency on China for essential inputs and raw commodities. India launched a flurry of production-linked incentive programmes to promote indigenous manufacturing and draw in foreign capital as nations look to reduce their reliance on the second-largest economy in the world.
India has become a more appealing investment location as a result of supply chain interruptions caused by pandemics, the US-China trade war, and geopolitical tensions. Calls to reduce commercial relations had been made as a result of border tensions between China and India.
Even yet, the administration maintained a realistic perspective on commerce with the larger neighbour.
Despite the fact that imports have increased overall, China’s proportion in India’s imports decreased from 15.43 percent in FY22 to 13.79 percent in FY23. According to the official, this started happening when fertilisers and electrical products began to arrive from other nations.
With shares of 7.45 percent and 7.03 percent in India’s import basket, the UAE and the US came in second and third, respectively.