India’s imports from China are declining, according to three data points: fewer growth in overall imports from China relative to global imports, fewer imports of electronics in FY23 than in FY22, and a diminishing share of China in India’s imports during the past five years.
Is this a foreshadowing of India edging away from its heavy reliance on China?
India imported $27.6 billion worth of electronics (HS85) from China in FY23, down from $30.3 billion in FY22. The PLI (production-linked incentive) mechanism is in use for electronics products, which is why the presentation is noteworthy. For instance, imports of laptops and PCs decreased by 23.1%, imports of mobile phones by 4.1%, and imports of solar cells, parts, etc. decreased by 70.9% between FY22 and FY23.
