2023: India's Electronic Device Imports from China See Decline

According to a report from the economic think tank GTRI, India's imports of electronic goods like laptops, personal computers (PCs), integrated circuits, and solar cells from China saw a decline in the 2022-23 period. This decline was particularly significant in electronic items covered by the PLI (production-linked incentive) scheme, as per the Global Trade Research Initiative (GTRI) report.

In the last fiscal year, imports of medical equipment decreased by 13.6% to $2.2 billion, and imports of solar cells, parts, and diodes slumped by 70.9% to $1.9 billion in 2022-23.

The report also revealed that imports of laptops and PCs fell by 23.1% to $4.1 billion, while mobile phone imports decreased by 4.1% to $857 million in the last financial year compared to 2021-22. Integrated circuits saw a 4.5% contraction, declining to $4.7 billion. Additionally, imports of urea and other fertilizers fell by 26% to $2.3 billion in 2022-23.

However, there was a notable increase of about 96% in the import of lithium-ion batteries, reaching $2.2 billion in the last fiscal year, largely driven by the adoption of electric vehicles.

The report highlighted the decline in India's imports from China across various sectors, with electronics imports dropping from $30.3 billion in FY22 to $27.6 billion in FY23. Furthermore, India's total goods imports from China grew at a slower rate of 4.2% during FY23 compared to global imports, which saw a higher growth rate of 16.1%.

China's share in India's merchandise imports also decreased from 16.4% in FY18 to 13.8% in FY23, marking a decline of 15.7%. However, China remains India's top import supplier, and India's dependence on China for various products persists.

In terms of exports, China ranks as India's fourth-largest export destination, with the US, UAE, and Netherlands being the top three partners. India's exports to China declined by 36% to $13.6 billion in 2022-23.

GTRI co-founder Ajay Srivastava emphasized that India's trajectory in electronics and computer hardware production was influenced by its signing of the Information Technology Agreement (ITA) in 1997, which rendered import duties on such products illegal. While the PLI scheme has yielded some positive results in reducing electronic product imports from China, Srivastava stressed the need for India to invest in deep manufacturing, including the production of lithium-ion cells for EV batteries, PCBs for laptops, and components for mobile phones, rather than just the final product's outer shell.

Subscribe to Export Portal Blogs and follow how the trade world develops on a daily basis!