NEW DELHI: Chinese exports to India increased by 45.51% in FY22 to Rs 7.02 trillion as compared with Rs 4.82 trillion in FY21, commerce ministry data showed. The biggest imports from China include mineral fuels, mineral oils, chemicals, fertilizers, plastic, iron and steel, electrical machinery and equipment, and medical equipment, among others. In FY 21, imports from China had grown marginally by 4.5% as compared with a fall of 6.21% in FY20.
Commenting on the significant increase in imports from China, Lekha S Chakraborty, Professor at the National Institute of Public Finance and Policy, said, “This is an irony why imports from China have increased by 45% in FY22 despite the bilateral political tensions. This rise in import dependency on China is not a sudden trend in FY22 but has been there in pandemic times.
A reversal in the trend of this import intensity from China can happen only with the economic growth convergence in the manufacturing sector to prior pandemic levels.” India and China have relatively large trade deficits, however catalysing India’s trade relations with the US may lead to ‘decoupling ‘ of India-China trade, she added.
“In India, industrial recovery has started. The imports from China are major, raw materials, components and other industrial goods required by the industries. It suggests that the industrial recovery has begun. It is not a cause of concern. Exports from India have also increased. Had we been importing finished goods from China, it could be a cause of concern,” senior economist Akash Jindal said.
India’s exports to China grew by 0.61% in FY22, which increased in FY21 by 33.59%. The major items of exports included iron and steel, ores, slag and ash, organic chemicals etc. Meanwhile, imports from Russia surged by more than 81% to `0.73 trillion in FY 22.