IAS Gyan

Daily News Analysis

India china trade relations

14th May, 2024 International Relations

India china trade relations

Disclaimer: Copyright infringement is not intended.


  • China surpasses the US to become India's top trading partner with $118.4 billion business.


  • China has reclaimed its position as India's largest trading partner, surpassing the United States after two years, according to the latest figures released by the Global Trade Research Initiative (GTRI).
  • In the fiscal year 2024, India's bilateral trade with China totalled $118.4 billion, with imports rising by 3.24% to $101.7 billion and exports increasing by 8.7% to $16.67 billion.
  • Trade between India and the US experienced a decline. Two-way trade was $118.3 billion in FY24, with Indian exports dropping by 1.32% to $77.5 billion and imports decreasing by 20% to $40.8 billion.
  • The report also compared other trading relationships with countries like Russia and Saudi Arabia. Russia's trade figures have seen a dramatic increase, with exports growing by 78.3% and imports soaring by 952%, leading to a widened trade deficit.
  • Trade with Saudi Arabia showed a more balanced growth, with exports more than doubling and imports rising at a slower pace.

Chinese dependence statistics

● The GTRI reporth ighlighted significant dependence and noted that, "India imported $4.2 billion worth of telecom and smartphone parts, accounting for 44 per cent of total imports in this category.

● Laptops and PCs imports from China totalled $3.8 billion, making up 77.7 per cent of India’s imports in this sector.

● India's import of lithium-ion batteries for electric vehicles, primarily from China, was valued at $2.2 billion, representing 75% of such imports,

India’s initiatives to reduce chinese dependence:

  • India's economic ties with China have been under close scrutiny due to a heavy reliance on Chinese imports in critical sectors such as telecommunications, pharmaceuticals, and advanced technology.
  • In response, India has implemented various measures to reduce this dependency, including production-linked incentive schemes (PLI), anti-dumping duties, and quality control orders.

For details on issues and way ahead on India-china trade relations refer:





Q. Crtically analyse the current status of India-China trade relations and the extent of India's dependence on China in trade.( 250 words)