India’s imports from China

India’s imports from China rose to a record in the first half of 2022.

In the first half of 2022, India’s imports from China reached a record $57.51 billion.
Two-way trade in 2021 crossed $100 billion for the first time, reaching $125.6 billion, with India’s imports accounting for $97.5 billion.
Electrical and mechanical equipment, chemicals used in industrial production, active medicinal ingredients, and automobile components were India’s top imports the previous year.

The Joint Economic Group and Business Council have institutionalised India-China economic interactions.

Employment
- Indians may get jobs if Chinese businesses build factories there.
Technology transfer
- China’s technology transfer could reduce our reliance on imports.
IT Export
- China is a good destination for Indian IT and software exports.
Chinese FDI
- FDI from China is crucial for Indian start-ups and businesses.
Low price electronic gadgets.
- Such as mobiles and laptops helps to achieve digital India mission.

Dumping
- Cheap Chinese products are flooding Indian markets which adversely affects domestic producers.
High import dependence
- High import dependence of China for electronics and pharma ingredients.
Trade deficit
- India has a high trade deficit with China which reduces our forex reserve
Agriculture market restriction
- China allows very low Indian Agri imports.
Tax evasion
- Chinese companies transfer profits to evade tax, which undermines India’s economic sovereignty.

Mediation
- Russia can be an effective mediator between India and China to solve issues.
Multilateral engagements
- Both countries are members of SCO, and BRICS can be very useful to put forward Indian interests.
Bilateral talking
- Between representatives of both countries to settle issues amicably.

Pic Courtesy: New Indian Express

Content Source: The Hindu