Major items imported from China such as electronic components, computer hardware and chemicals are used for meeting the demand of fast expanding sectors like telecom and power in India, a government official said on Thursday.
The official said that these imported items from China are in the form of raw material, which are used for producing finished goods that are also exported outside the country.
Exports to China marginally increased to USD 21.25 billion last fiscal year from USD 21.18 billion in 2020-21, while imports jumped to USD 94.16 billion from about USD 65.21 billion in 2020-21. Trade gap rose to USD 72.91 billion in 2021-22 from USD 44 billion in previous fiscal year, the commerce ministry data showed.
According to trade data released by Chinese customs, the total bilateral trade between the two countries rose by 14.6 per cent to USD 103.63 billion during January-September this year.
Major items of import from China are electronic components, computer hardware and peripherals, telecom instruments, organic chemicals, industrial machinery for dairy, residual chemicals and allied products, electronic instruments, bulk drugs and intermediates.
“Many of these imported items are used for meeting the demand of fast expanding sectors like telecom and power in India. The imports from China are dominated by intermediate (33.54 per cent), and capital goods (19.34 per cent),” the official said.
India has imported pharma products worth USD 4.1 billion in April-September 2022, of which China’s share is 43 per cent (USD 1.74 billion).
Out of this, bulk drugs and drug intermediates comprised of 55.42 per cent of India’s total pharma imports worth USD 2.25 billion.
“These bulk drugs and drug intermediates provide domestic pharma industry raw material for producing finished goods which are also exported out of India,” the official added.