India raises imports of major commodities from China, reflecting economic dependence: expert

Liu Zongyi    source：Global Times

The reported rise in India's imports of at least 25 major commodities from China in the 2023 fiscal year reflects its economic dependence on the world's second-largest economy despite its desire to replace China in the global supply chain, an expert told the Global Times on Thursday. 

The 25 major commodity groups cover categories such as electronics, auto components and iron and steel products, Reuters reported on Wednesday, citing a government statement. 

The imports of electronic instruments from China grew 14 percent year-on-year in fiscal 2023. The imports of organic chemicals rose 9 percent year-on-year while the imports of iron and steel products increased by 12.3 percent, per the report. 

It shows India still relies on Chinese imports, Liu Zongyi, secretary-general of the Research Center for China-South Asia Cooperation at the Shanghai Institutes for International Studies, told the Global Times on Thursday, adding that the country has to further process the products and export them to Western countries.  

India is still highly dependent on China's economic development in various aspects, Liu noted, adding that India can’t fully implement bans on more Chinese imports without risk of economic collapse. 

China-India trade in the first seven months of 2023 reached 537.3 billion yuan ($74.54 billion), a year-on-year increase of 4.6 percent, while China's exports to India reached 461.94 billion yuan, according to Chinese customs data. 
  
India has banned its military drone-makers from using Chinese-made components in recent months, citing so-called security concerns, according to media reports. Liu added that the ban has caused constraints in India’s military production.  

India is rushing to catch up in its "Make in India" campaign as it believes the current international environment amid China-US tension is beneficial for the process. 

Liu said that the rush also comes as the government of Prime Minister Narendra Modi is aiming to gain more support from the public before upcoming elections as the "Make in India" campaign has not achieved noticeable results. In fact, the share of India's manufacturing sector in the nation's total GDP has fallen.

Earlier in August, India imposed import licensing requirements for laptops, tablets and personal computers, per a government notice.  

Liu said that the move released a signal for multinationals to pick either the Chinese market or the Indian market.