जनवरी-अप्रैल 2024 के दौरान चीन से माल आयात धीमा हो गया

जनवरी-अप्रैल 2024 के दौरान चीन से माल आयात धीमा हो गया

Goods imports from China slow down during Jan-April 2024

Initiatives like 'Make in India' and production-linked incentives aim to enhance local manufacturing and address the trade imbalance.

  • Global News
  • 117
  • 19, Jun, 2024
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Tamanna Varshney
  • @TamannaVarshney

Goods imports from China slow down during Jan-April 2024

New Delhi: India's Manufacturing Push Curbs Dependence on Chinese Imports

India's concerted efforts to bolster its manufacturing sector and reduce reliance on Chinese imports have started to bear fruit, as evidenced by a noticeable decline in merchandise imports from China over the first few months of the year. According to data from the Commerce Ministry, the import figures have shown a downward trend since January, though they have recently stabilized.

In January, India's imports from China were valued at $8.96 billion. This figure fell to $8.09 billion in February and further declined to $7.75 billion in March. By April, imports had plateaued at $7.79 billion. Despite this reduction, the overall bilateral trade remains significantly tilted in favor of China, indicating that Indian industries across various sectors still heavily depend on Chinese manufacturing capabilities.

An analysis of the data reveals that China's share in India's total imports also saw a decline during the January-February period, despite an upward trend in overall imports. In January, while India's total imports amounted to $53.35 billion, China's share was 16.79%. By February, even though total imports had increased to $60.11 billion, China's proportion dropped to 13.46%.

The trend continued into the following months. In March, China’s share slightly increased to 13.53% out of $57 billion in total imports and further to 14.4% in April, with total imports slightly dipping to $54 billion. Notably, in April, China held the largest share of India's import basket, followed by Russia at 9.7%, the United Arab Emirates at 6.14%, and both the US and Saudi Arabia at 5.9%.

India's imports from Russia, the UAE, and Saudi Arabia predominantly comprise crude oil, an essential commodity for the country’s energy needs.

Cutting Non-Essential Imports

India's import portfolio from China includes a wide array of goods, such as telecom and smartphone components, laptops and personal computers, various plastics, iron and steel products, chemicals, non-assembled cells, lithium-ion batteries, fertilizers, and other electronic goods like radio transmission and television apparatus parts. The reliance on these imports underscores the significant role that Chinese manufacturing plays in India's supply chain across numerous industries.

In response to this dependency, India has been actively pursuing strategies to cut down on the importation of non-essential consumer and electronic goods from China. This move is part of a broader strategy to address the trade imbalance between the two nations. By focusing on reducing these imports, India aims to stimulate its domestic manufacturing sector and create a more self-reliant economic structure.

Efforts such as the 'Make in India' initiative have been pivotal in promoting local manufacturing. The government has also introduced production-linked incentive (PLI) schemes in various sectors to encourage domestic production and reduce import dependency. These measures are designed to make Indian manufacturing more competitive on a global scale, thereby reducing the need to import goods that can be produced domestically.

Furthermore, the geopolitical tensions and the global push for diversified supply chains post-pandemic have also played a role in India’s strategy to reduce dependence on China. By diversifying its trade partnerships and strengthening its own manufacturing capabilities, India is looking to secure its economic interests more robustly.

While the initial data indicates progress, the road ahead is challenging. Indian manufacturers need to scale up quickly to meet the domestic demand previously catered to by Chinese imports. The success of these efforts will largely depend on the ability to innovate, improve quality, and maintain cost competitiveness.

In conclusion, India's targeted approach to boost domestic manufacturing and reduce reliance on Chinese imports is beginning to show results. However, the journey towards a balanced and self-reliant trade structure is ongoing and requires sustained effort and strategic planning. The evolving trade dynamics between India and China will be crucial to watch as India continues to push for a more robust and self-sufficient manufacturing sector.

News Reference

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Tamanna Varshney

  • @TamannaVarshney