CHINESE COMPANIES SUBVERTING PM MODI'S STRICT IMPORT REGULATIONS

It is very easy to identify the big players who are importing Chinese goods and discourage them from doing so.

- ABHINANDAN MISHRA

Chinese companies are significantly undermining the growth and advancement of Indian domestic industries, despite the “Make in India” initiative launched by Prime Minister Narendra Modi in September 2014.

Data indicates these efforts have not yielded the desired results, largely because of Indian companies’ hesitancy to diversify their focus both domestically and internationally and broaden their product portfolios to reduce dependence on Chinese goods, despite Beijing posing a strategic challenge to India.

As per the latest data by the Ministry of Commerce, India’s export to China was $2,570.88 million that was 3.44 % of India’s total export. In contrast, the total value of imports was $16,276.59 million which is 14% of India’s total import, making China the biggest source of imports to India.

According to research reports, China regained its position as India’s top trading partner in May, surpassing the United States after a two-year gap. In the fiscal year 2024, bilateral trade between India and China reached US$118.4 billion. Imports from China grew by 3.24% to US$101.7 billion, while exports to China increased by 8.7% to US$16.67 billion. India imported US$4.2 billion worth of telecom and smartphone parts from China, constituting 44% of total imports in this category. Similarly, imports of laptops and PCs from China amounted to US$3.8 billion, making up 77.7% of India’s imports in this sector. The trade imbalance between India and China currently stands at a significant $85 billion.