India China trade

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Context:

• GTRI report illustrated the "significant reliance on imports from China across various sectors", citing trends from the first 10 months of 2023-24.

Highlights of the  Global Trade Research Initiative (GTRI) report:

Imports Statistics

• As per the report, India's imports from China crossed $101 billion in 2023-24 from about $70 billion in 2018-19.
• The country's share of India's industrial goods imports has risen from 21% to 30% over 15 years, which implies that Chinese imports will rise sharply in the coming years.
• Goods imports from China have risen 2.3 times faster than India's total imports over 15 years.
• China is the top supplier in eight major industrial sectors, including machinery, chemicals, pharmaceuticals, and textiles, belying the general perception that Chinese imports are high only in the electronics sector.
• India's total merchandise imports stood at $677.2 billion in 2023-24, of which 15% or $101.8 billion from China.
• Almost 42% of India's textile and clothing imports and 40% of its machinery imports in the period came from China, while that number was 38.4% for electronics, telecom, and electrical products.

Exports Statistics

• Between 2018-19 and 2023-24, India's exports to China have stagnated around $16 billion annually while imports have surged, resulting in a cumulative trade deficit exceeding $387 billion over six years.
• India's exports to China have increased in the past year in as many as 90 principal commodities out of the total 161 items shipped to the country. These 90 commodities accounted for 67.7% of India's export basket to China.

Conclusion:

• The strategic implications of this import dependency are 'profound' and affect not only economic but national security dimensions, calling for a reassessment of strategies. This is imperative not only to mitigate economic risks but also to boost domestic industries and reduce dependency on single-country imports, especially from a geopolitical competitor like China.

Read all the details about India-China trade relations  in:

https://www.iasgyan.in/daily-current-affairs/india-china-trade-relationship

https://www.iasgyan.in/daily-current-affairs/india-china-trade-relations

Intellectual property rights and details:

https://epaper.thehindu.com/ccidist-ws/th/th_international/issues/81162/OPS/GL2CNVQT8.1.png?cropFromPage=true

Source

The Hindu

PRACTICE QUESTION Q) Discuss the implications of India's growing import dependency on China, as highlighted in the Global Trade Research Initiative (GTRI) report. Analyze the economic and national security dimensions, and propose strategic measures to mitigate risks and enhance domestic industries, considering the geopolitical competition with China.(250 words)