Chinese imports to India amounted to $55.7 billion, reaffirming China’s position as the largest exporter to the Indian market. Among these imports, consumer electronics remain the most significant, reflecting India’s heavy reliance on Chinese manufacturers for these goods. Despite challenges such as the COVID-19 pandemic, this dependence has persisted, underscoring the critical role of Chinese imports in India’s supply chain. China’s exports to India have grown rapidly over the last 15 years, particularly in sectors such as electronics, telecom, machinery, chemicals, and pharmaceuticals, leading to a significant trade deficit and increasing India’s dependency on Chinese imports. Several factors contribute to this dynamic, including cost-effectiveness, diverse product range, and the established trade relationship between the two nations. While India maintains strong trade ties with countries like the USA and Russia, the volume and variety of imports from China continue to be unmatched.
China accounts for approximately 14% of India’s total imports. While the USA remains India’s largest trading partner, China holds the second position. The key distinction between India’s trade relationships with these two countries lies in the trade balance: India enjoys a trade surplus of $16 billion with the USA, whereas it has a significant trade deficit of $53 billion with China.
Importing products from China to India
Importing products from China to the Indian market is popular among firms looking for cheap and flexible products, making India import a significant amount from China. The process includes navigating several trade laws, analysing market demand and deciding on the most cost-efficient transport method. The importance of raw materials imported from China cannot be overstated, as they impact various Indian industries, including machinery, electronics, telecommunications, and construction. China provides a wide variety of services across India including electronics, textiles and telecommunications products. Importing Chinese products into India provides opportunities, although some thought must be taken. Firstly, ensure you’re registering your International Importer-Exporter Code (IEC), and your passport in international trading. Choose the product that complies with the specifications of India or from an authentic China source.
What products does India buy from China?
Top Products which India Imports from China are;
- Electronics products
- Organic Chemicals
- Nuclear Machinery
- Parts of computers
- Cars and motorcycles parts
- Toys
- Fertilizers
- Mobiles
- Lightings
- Milk products
- optical and medical instruments
- Iron and steel
India imports a wide range of products from China, with the latest data highlighting the following key categories:
- Electrical and Electronic Equipment: $30.63 billion
Items include electronic integrated circuits, micro assemblies, telephony apparatus, diodes, transistors, TVs, cameras, and radar apparatus. - Machinery, Nuclear Reactors, and Boilers: $21.72 billion
This category includes data processing machines, air or gas compressors, and parts of typewriters and calculating machines. - Organic Chemicals: $13.55 billion
Used mainly in the pharmaceutical industry, including heterocyclic compounds, nucleic acids, and various acids. - Plastics: $5.44 billion
Includes various plastic products, with a significant portion historically used for toys. - Fertilizers: $2.34 billion
Critical for the agricultural sector, including diammonium phosphate and urea. - Optical, Photo, Technical, Medical Apparatus: $2.21 billion
Includes medical and technical instruments essential for various industries. - Iron and Steel: $1.98 billion
Important for construction and manufacturing sectors. - Vehicles Other Than Railway or Tramway: $1.80 billion
Includes parts and accessories for cars and motorcycles.
These imports reflect the diverse and critical nature of India’s reliance on Chinese products across various industries.
Source of Information.
Electrical and electronic equipment
According to global trade databases, Indian companies bought electronic equipment from Chinese manufacturers for a cost of $30.64bn by 2022. Everything exciting in electronics comes from China. Through research into this market you may have a business that sells or provides goods.
India’s industrial product imports have seen a significant rise in dependence on Chinese goods, with China’s share increasing from 21% to 30% over the last 15 years. This dependence spans key sectors such as electronics, telecom, machinery, chemicals, pharmaceuticals, and others. The presence of Chinese firms operating in India, particularly in the electric vehicle and automotive sectors, has also contributed to this rise.
According to the latest data, India imported electrical items worth $30.63 billion from China in 2022. Key items include:
- Electronic integrated circuits and micro assemblies
- Electrical apparatus for line telephony or telegraphy
- Diodes and transistors
- Semiconductor devices
- Transmission apparatus for radiotelephony
- TVs, cameras, cordless telephones
- Radio and radar apparatus
These items are typically imported from major Chinese manufacturing hubs like Shenzhen, Guangzhou, and Shanghai.
Subcategory Imports:
- Integrated circuits: $4.56 billion
- Broadcasting equipment: $5.56 billion
- Computers: $6.28 billion
India faces challenges in manufacturing these items due to the high initial investment required for setting up advanced production facilities, lack of cutting-edge technology, and insufficient infrastructure compared to China, which has established itself as a global manufacturing leader.
Source: The Observatory of Economic Complexity (OEC))
Cars and motorcycles parts
India imports a substantial amount of car and motorcycle parts from China, totaling $1.80 billion in 2022. These imports primarily come from major Chinese manufacturing hubs like Shenzhen, Guangzhou, and Shanghai. The key items in this category include:
- Engines and transmission parts
- Rim products and hubcaps
- Front and rear spoilers
- Car lights and rearview mirrors
- Car sensors and cables for car accessories
Subcategory Breakdown:
- Engines and transmission parts: $450 million
- Car lights and rearview mirrors: $300 million
- Car sensors and electronics: $200 million
India faces several challenges in manufacturing these items domestically. The high initial investment for setting up advanced production facilities, lack of cutting-edge technology, and insufficient infrastructure compared to China are significant barriers. Additionally, China’s well-established supply chains and economies of scale make their products more cost-effective.
India’s imports of car and motorcycle parts are part of a broader trend of increasing imports from China over the last 15 years. This includes industrial goods like telecom, machinery, electronics, chemicals, and pharmaceuticals. The growing trade deficit and strategic implications highlight the need for India to recalibrate its import strategies to reduce dependency on single-country imports, especially from a geopolitical competitor like China.
Twenty years ago, China undertook significant initiatives to become the global manufacturing hub. The Chinese government invested heavily in infrastructure, created special economic zones (SEZs) with favorable business policies, and emphasized vocational training to build a skilled workforce. These strategic moves, coupled with competitive pricing and efficient logistics, positioned China as a leading exporter worldwide.
Organic chemicals
In 2022, India imported organic chemicals worth $1.90 billion from China, making it a significant category of imports. These chemicals are essential for various industrial applications, with the pharmaceutical industry being the primary consumer. The key types of organic chemicals imported include:
- Heterocyclic Compounds with Nitrogen: These compounds are crucial for the synthesis of many pharmaceutical drugs and agrochemicals.
- Nucleic Acids and Antibiotics: Used extensively in the production of medications and genetic research.
- Saturated Acyclic Monocarboxylic Acids: These are used in the manufacture of various chemical products, including plastics and pharmaceuticals.
- Unsaturated Acyclic or Cyclic Monocarboxylic Acids: Important for creating polymers and other chemical intermediates.
- Oxygen-Function Amino-Compounds: These compounds are vital for the production of pharmaceuticals and other specialized chemicals.
- Polycarboxylic Acids: Used in the manufacture of resins, plastics, and pharmaceuticals.
India’s reliance on Chinese imports for these chemicals is due to China’s advanced manufacturing capabilities, cost-effectiveness, and the scale of production that allows for consistent supply. The significant increase in China’s share of India’s total imports of industrial goods, including organic chemicals, highlights the growing dependency on Chinese imports. This dependency has strategic implications, emphasizing the need to diversify supply chains and reduce single-country dependency.
Machinery sector
In 2022, India imported machinery, nuclear reactors, and boilers worth $21.72 billion from China, marking a significant increase from $18.8 billion in 2021, representing a more than 15% rise from the previous year. This category of imports is vital for supporting India’s industrial and technological infrastructure.
India’s global imports of machinery from China have strategic implications, highlighting the heavy dependence on Chinese electronic goods, machinery, chemicals, pharmaceuticals, and other industrial product categories. This dependency underscores the need for India to diversify and strengthen its supply chains to reduce reliance on single-country imports, particularly from China.
The largest portion of these imports included:
- Automatic Data Processing Machines: These machines are essential for computing and data management, used extensively in various industries including IT and manufacturing.
- Magnetic or Optical Readers: These devices are crucial for reading and processing data from magnetic and optical media, important for both industrial and consumer applications.
- Parts of Typewriters and Calculating Machines: Although less common in modern offices, parts for these machines still play a role in certain specialized settings and industries.
- Air or Vacuum Pumps: Used widely in both industrial processes and research applications, these pumps are critical for creating controlled environments and managing airflows.
- Air or Other Gas Compressors: Essential for a range of industrial applications, including manufacturing, construction, and automotive industries, these compressors help in managing and utilizing compressed air and gases effectively.
China’s advanced manufacturing capabilities and cost-effective production processes make it a leading supplier of these machinery items to India. The substantial rise in imports reflects the growing demand for such equipment in India, driven by rapid industrialization and infrastructure development.
Optical, Photo, Technical, and Medical Apparatus
In 2022 Chinese medical equipment imported to India accounted for 220 million dollars in optical and medical devices. Medical Equipment – Diagnostic Imaging equipment from China is a major product category that meets a growing medical need. Budget problems might also cause quality issues. Science equipment: While the development of scientific equipment is largely based on cheap Chinese technology, there’s concern about intellectual / technology rights. Encourage domestic research and technology: This is important to reduce dependence by developing technologies in those fields.
Plastics
According to the United Nations COMTRADE database, India imported plastics worth $5.44 billion from China in 2022, making it the fourth largest import category. Historically, the Chinese industry dominated the Indian toy market, accounting for 70% of India’s toy imports due to their low prices, variety, and availability. This led to India importing over $600 million worth of toys from China, primarily consisting of plastic and electronic toys.
China’s share in India’s industrial goods imports has increased from 21% to 30% over the last 15 years. This significant dependency on Chinese goods, including plastics, has strategic implications for domestic industries and highlights the need for diversified supply chains.
Fertilizers
India imports fertilizers like diammonium phosphate to enhance its agricultural productivity, particularly chrome yield. Other essential fertilizers include urea, a popular nutrient among Indian farmers. According to the United Nations COMTRADE database, India imported fertilizers worth $2.34 billion from China in 2022, down from $2.69 billion in 2021. Despite this decline, the supply of Chinese fertilizers remains crucial, especially post-COVID-19. Additionally, China is a key importer of Indian sulfur, highlighting the importance of this trade route for both countries.
Optical, Photo, Technical, and Medical Apparatus
In 2022 Chinese medical equipment imported to India accounted for 220 million dollars in optical and medical devices. Medical Equipment – Diagnostic Imaging equipment from China is a major product category that meets a growing medical need. Budget problems might also cause quality issues. Science equipment: While the development of scientific equipment is largely based on cheap Chinese technology, there’s concern about intellectual / technology rights. Encourage domestic research and technology: This is important to reduce dependence by developing technologies in those fields.
Iron and steel
According to global market estimates India will export steel to China by 2020. Chinese steel is often utilized for infrastructure projects, mainly due to its low costs and availability. This dependence impacts project costs as well as supply security. India is investing heavily on steel production to reduce its dependency and the investment will enhance infrastructure capacity.
What Are the Most Profitable Items to Import from China to India?
Profitability depends on several elements however a high-demand product with relatively low import cost is regarded as a good option. Consider the following items: Electronic Equipment/Equipment/ Machine Tools/Parts.
Importing from China to India can be highly profitable due to the cost advantages and the variety of products available. Here are some of the most profitable items to import:
1. Electronics and Gadgets:
- Mobile Phones and Accessories: High demand for affordable smartphones and accessories.
- LED Lights: Cost-effective and energy-efficient lighting solutions.
- Computer Components: Parts like processors, motherboards, and graphic cards.
2. Machinery:
- Industrial Machinery: Machines for manufacturing and construction.
- Agricultural Equipment: Including small tractors, tillers, and harvesters.
3. Clothing and Textiles:
- Garments: Ready-made clothing is in high demand due to fashion trends and low production costs in China.
- Fabrics: High-quality and diverse fabric options.
4. Toys and Games:
- Plastic and Electronic Toys: A large market in India due to affordability and variety.
5. Home Decor and Furniture:
- Home Furnishings: Curtains, cushions, and other decorative items.
- Furniture: Flat-pack and assembled furniture items.
6. Footwear:
- Shoes and Sandals: Fashionable and affordable options in high demand.
7. Cosmetics and Beauty Products:
- Makeup and Skincare: Growing interest in affordable and varied beauty products.
8. Automobile Parts:
- Car and Motorcycle Parts: Spare parts, accessories, and essential components.
9. Medical Supplies:
- Personal Protective Equipment (PPE): Masks, gloves, and other PPE.
- Medical Devices: Including thermometers and diagnostic equipment.
10. Stationery and Office Supplies:
- Office Supplies: Pens, notebooks, and other stationery items.
These categories reflect high demand and profitability due to cost advantages, quality, and variety offered by Chinese manufacturers.
Importing from China to India: Challenges and Solutions
Besides being a lucrative source of Chinese export products, the industry faces a number of challenges. Among the main problems is navigate through custom regulations, ensure product quality and find the quickest route for importing products. To address them, a thorough investigation should begin and establish a reliable website such as Eximpedia.app where you can get the best statistics on Import from China to India. However, understanding the cheapest ways to import from China to India will be essential in order to achieve a successful export.