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China regains the top spot as India’s largest trading partner

In a significant shift in India’s trade dynamics, China has reclaimed its position as India’s main trading partner, surpassing the United States
  • The latest figures from the Global Trade Research Initiative (GTRI) reveal India’s growing economic ties with China, as well as the ongoing reliance on Chinese imports

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UPDATED: 11 Jun 2024, 7:46 am

In the latest figures from the Global Trade Research Initiative (GTRI), China has reclaimed its position as India’s largest trading partner, surpassing the United States after a two-year period. 

According to a report by Indian news outlet Mint, during the fiscal year 2024, which ends on 30 June, India’s bilateral trade with China is expected to reach $118.4 billion, with imports rising by 3.24 percent to $101.7 billion and exports increasing by 8.7 percent to $16.67 billion.

Meanwhile, trade between India and the US has fallen and is expected to total $118.3 billion, with Indian exports dropping by 1.32 percent to $77.5 billion and imports decreasing by 20 percent to $40.8 billion.

[See more: China’s commerce minister warns the EU against trade restrictions]

However, India’s economic ties with China have been under close scrutiny in Delhi due to its reliance on Chinese imports in critical sectors such as telecommunications, pharmaceuticals, and advanced technology. 

The GTRI noted that India imported $4.2 billion worth of telecom and smartphone parts this fiscal year, accounting for 44 percent of total imports in this category. Laptop and PC imports from China totalled $3.8 billion, making up 77.7 percent of India’s imports in this sector. India’s import of lithium-ion batteries for electric vehicles, primarily from China, has also been valued at $2.2 billion, representing 75 percent of such imports.

According to Mint, Delhi has implemented various measures to reduce its reliance on Chinese imports, including production-linked incentive schemes (PLI), anti-dumping duties, and quality control orders. 

UPDATED: 11 Jun 2024, 7:46 am

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