India’s imports of Chinese goods continue to rise in 2023, rising 4.6% to cross $37.86 billion in the first four months of the year.
Data from China’s General Administration of Customs showed two-way trade at the end of April climbed 4.5% from the year-ago period to reach $44.34 billion. India’s exports to China also grew by 3.7%, but were still a small share of bilateral trade.
In 2022, bilateral trade with China is set to reach a record $135.98 billion, driven by a 21% increase in imports into India. The trade deficit crossed $100 billion for the first time last year.
Analysts said the continued rise in imports of Chinese goods presented a mixed picture, highlighting the rise in demand for intermediate goods needed by Indian industry, as well as the continued reliance on sourcing from China, worrying political concerns for New Delhi. There is concern between relationships.
In recent years, India’s largest imports from China include active pharmaceutical ingredients (APIs), chemicals, electrical and mechanical machinery, auto components and medical supplies.
In the first four months of the year, trade with ASEAN, China’s largest trading partner, rose 5.6% to $304.63 billion. Trade with the European Union and the United States, China’s second and third largest trading partners, has recently, however, seen a decline, highlighting the need to “de-risk” supply chains away from China. While trade with the EU declined by 3.5% to $262.53 billion, that with the US declined by 11.2% to $217.92 billion.