Top Import Products from India to China: The USA is India’s biggest trading partner, but China is also crucial, though tensions have risen lately due to the pandemic and border issues. Some politicians advocate boycotting Chinese goods. Despite importing from China, India also exports raw materials and products to them, keeping the trade balanced. China mainly imports items related to manufacturing from us. This article explores what China imports from India, what it exports, and the implications for our trade ties.
Why Does India Import Products From China?
India buys products from China because they are both good quality and affordable. Even after the pandemic, China remains India’s main source of imports, providing a large portion of what India brings in from other countries. In the first part of 2023, the value of goods coming from China to India increased by 4.16%, reaching $98.5 billion. In 2022, India imported a record-breaking $89.66 billion worth of goods from China in just nine months. Despite India raising its import taxes, imports from China kept going up.
India-China Trade Balance
India usually buys more from China than it sells, creating a trade imbalance.
In April 2023, although there was a small decrease in imports, India’s trade deficit remained high at -1.38 billion USD. This is because India faces challenges in selling its products to China, like pharmaceuticals and IT/ITES.
The main things India imports from China include consumer electronics, machinery, chemicals, and plastics. On the other hand, India mostly sells raw materials like iron ore, fuel, and chemicals to China.
Some Indian industries, especially pharmaceuticals, rely heavily on products from China. For example, the pharmaceutical industry, worth $42 billion, imports about 68% of its active ingredients from China. The demand for medical supplies from China has also grown a lot recently.
Top Import Products from India to China
|
Products
|
Value
|
|
Electrical, electronic equipment
|
$939.79M
|
|
Machinery, nuclear reactors, boilers
|
$1.18 Billion
|
|
Organic chemicals
|
$1.90 Billion
|
|
Plastics
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$347.54M
|
|
Fertilizers
|
$1.33M
|
|
Iron and steel
|
$532.47M
|
|
Optical, photo, technical, medical apparatus
|
$208.69M
|
|
Vehicles other than railway, tramway
|
$187.37M
|
|
Aluminum
|
$396.29M
|
|
Mineral fuels, oils, distillation products
|
$331.61M
|
Electrical, electronic equipment
India imported electronic equipment worth $939.79M from China in 2022, according to the United Nations COMTRADE database on international trade.
Here is a list of electronic equipment that India imports from China:
Electronic integrated circuits and micro assemblies
Electrical apparatus for line telephony or telegraphy
Diodes
Transistors
Similar semiconductor devices
Transmission apparatus for radiotelephony
TV
Cameras
Cordless telephones
Parts for television
Radio and radar apparatus.
India heavily depends on China for electronic goods. For example it sources close to 90% of certain mobile phone components from China. According to the World Trade Center in Mumbai, more than 90% of the electronic goods imported from China were integrated circuits and television sets in 2020.
Machinery, nuclear reactors, boilers
In 2022, India imported machinery nuclear reactors, and boilers worth $1.18 billion from China, marking a significant increase from $18.8 billion in 2021, representing a more than 15% rise from the previous year.
The largest portion of imports included:
Automatic data processing machines
Magnetic or optical readers
Parts of typewriters and calculating machines
Air or vacuum pumps
Air or other gas compressors.
Organic chemicals
In 2022, India imported organic chemicals worth $1.90 billion from China, a significant category of imports.
These chemicals are primarily used in the pharmaceutical industry and include:
Heterocyclic compounds with nitrogen
Nucleic acids and antibiotics
Saturated acyclic monocarboxylic acids
Unsaturated acyclic or cyclic monocarboxylic acids
Oxygen-function amino-compounds
Polycarboxylic acids.
Plastics
According to the United Nations COMTRADE database on international trade India’s plastic imports from China reached $347.54M in 2022 making it the fourth largest import category.
China used to dominate India’s toy market, accounting for 70% of toy imports. Chinese toys were popular due to their low price, variety, and availability compared to domestically produced toys, leading to intense competition in the market.
India used to import over $600 million worth of toy products from China, with plastic and electronic toys being among the most popular items.
Fertilizers
India imports fertilizers, like diammonium phosphate to improve its crop yield, especially for crops like chrome. These fertilizers play a vital role in the country’s agricultural sector.
Another important fertilizer is urea, which is widely used by Indian farmers to nourish plants.
According to the United Nations COMTRADE database on international trade, India imported fertilizers worth $1.33M. However, this was slightly lower than the $ 2.34 imported in 2022.
Despite the slight decrease, the supply of Chinese fertilizers remained crucial for India, particularly after the Covid-19 pandemic disrupted global trade.
The trade relationship is significant for Indian exports, as China is the primary importer of Indian sulfur.
Iron and steel
According to the United Nations COMTRADE database on international trade India imported iron and steel valued at $532.47M from China in 2022. This shows a slight rise compared to 2021, possibly due to increased demand for iron and steel following the Covid-19 pandemic.
Chinese steel imports often consist of high-quality ferroalloy products, which are in high demand among Indian automobile and engineering goods manufacturers. These imports play a important role in supporting various industries in India.
Optical, photo, technical, medical apparatus
In 2022, the value of optical, photo, technical, and medical apparatus imported from China to India was $208.69M. These imports encompass a range of essential product categories, including mechano-therapy appliances, massage apparatus, ozone therapy apparatus, as well as instruments and appliances used in medical, surgical and dental clinics.
Measuring or checking instruments and machines, along with apparatus for the use of X-rays or of Alpha, Beta, or Gamma radiations, are also part of these imports.
Currently, India relies on imports for approximately 80% of its medical devices, with top exporters including the US, Germany, China, Singapore and the Netherlands. This underscores the importance of international trade in supporting India’s healthcare sector and ensuring access to essential medical equipment.
Vehicles other than railway, tramway
India imported vehicles other than railway and tramway equipment from China, amounting to $187.37M in 2022. These imports include a variety of vehicles such as cars, trucks, buses, and motorcycles. China is known for its robust automobile manufacturing industry, producing vehicles that cater to different market segments and price points.
The import of vehicles from China allows India to meet domestic demand for transportation options and provides consumers with a diverse range of choices in terms of vehicle types and models.
Aluminum
India imported aluminum products from China valued at $396.29 million in 2022. These imports encompass various aluminum products such as sheets, plates, bars, rods, and pipes.
Aluminum is a versatile metal used in a wide range of industries, including construction, transportation, packaging, and electronics. China is a major producer of aluminum, offering a competitive advantage in terms of pricing and availability. Importing aluminum from China allows India to meet its domestic demand for this essential metal and support various sectors of its economy.
Mineral fuels, oils, distillation products
India imported mineral fuels, oils, and distillation products from China with a total value of $331.61 million in 2022. These imports primarily consist of petroleum oils, crude oils, and other mineral fuels importantl for various industries and energy production. China, being a significant producer and exporter of such products, provides India with a stable and reliable source to meet its energy needs. The import of mineral fuels and oils from China contributes significantly to India’s energy security and economic development.
Conclusion
India and China have a strong trade partnership involving a wide array of products. From electronics and machinery to chemicals and plastics, both countries depend on each other for essential goods.
To make it even better Indian companies can work on making better products and following the rules. Both countries need to keep working together to make trade easier and more successful.
Related Links
1. Top 10 Products Exported From Russia
2. Top Import Products from India to Russia
3. Top 10 Products Exported From china
4. India-China Relations
FAQs on Top Import Products from India to China
What are the top import products from India to China?
The top import products from India to China include electrical and electronic equipment, machinery, organic chemicals, plastics, iron and steel, optical and medical apparatus, vehicles, aluminum, mineral fuels and textiles.
How much do India’s exports to China contribute to its economy?
India’s exports to China contribute significantly to its economy, providing revenue, fostering economic growth and creating employment opportunities in various sectors.
What are the major industries driving India’s exports to China?
Major industries driving India’s exports to China include manufacturing, pharmaceuticals, chemicals, textiles, automotive and electronics.
How has the trade relationship between India and China evolved over time?
The trade relationship between India and China has evolved over time, facing challenges such as geopolitical tensions, trade disputes, and market competition. However, both countries continue to engage in bilateral trade to benefit their economies.
What’s India’s biggest export?
Petroleum Products is the biggest export.
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