China surpassed US to become india’s largest trading partner

China surpassed US to become india’s largest trading partner

In fiscal year 2023-24, imports from China crossed the 100 billion mark and surpassed the US after the two years of gap. Now China has become the largest trading partner of India.

As per the data released by Global trade research initiative (GTRI), the bilateral trade between India and China stood at $118.4 billion in 2023-24 witnessing 3.24 percent growth from $101.7 billion last year. Exports to China also increased by 8.7 percent at $16.67 billion in 2023-24.

Second spot:

If we talk about the US, the bilateral trade between India and the US reached $118.3 billion and the US became the second largest trade partner of India. Exports to the US also decreased by 1.32 percent to 77.5 billion as compared to last year.

Import dependency on China:

There are some critical products for which India is dependent on its neighboring countries, especially China.These products include Telecom and smartphone parts, pharma and advanced technology components.

However, there are various steps and measures taken by India to decrease its dependency on China such as production linked incentive schemes, anti dumping duties and quality control orders.

Around 44 percent of imports of Telecom and smartphone parts worth 4.2 billion came from China. The value of imports of Laptops and PCs from China was 3.8 billion marking up 77 percent of India’s imports in this sector.

Conclusion:

India has been increasingly concerned about its dependency on imports from China, particularly in strategic sectors such as pharmaceuticals, electronics, and infrastructure. This dependency poses risks to India’s national security and economic sovereignty. To address this, India has been exploring various measures including boosting domestic manufacturing, diversifying import sources, and strengthening trade ties with other countries.

Important Questions:

• Which country is the largest trading partner of India?
• What are some critical products for which India is majorly dependent in China?

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