India’s trade data highlights a growing dependence on China, with imports worth over $30 billion in FY25. This accounts for nearly one-third of India’s total imports from Beijing, underlining how critical Chinese supplies remain for Indian industries.
Key Categories of Reliance
In 59 product categories worth $1.3 billion, China accounts for virtually all of India’s imports. Another $5 billion worth of imports, including drug ingredients and electronic display products like LCDs, come almost exclusively from China, with Beijing holding a 90%+ market share.
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Post-Pandemic Trends
Out of nearly 2,000 commodities that India sources from China, there are 603 items where over two-thirds of imports come from the East Asian giant. In 416 categories alone, worth $25.2 billion, India’s dependence has actually increased compared to pre-pandemic levels.
Relief from China’s Export Easing
China’s decision to lift restrictions on rare earths, fertilisers, and tunnel boring machines is expected to provide some relief to Indian industries. However, data shows that India’s reliance is far deeper, spreading across critical sectors like pharma ingredients, chemicals, and machinery parts.
Market Insights
Pharma & electronics remain most vulnerable to supply disruptions from China.
China’s dominance in rare earths and fertilisers could impact India’s manufacturing and agriculture if curbs return.
Industries may need to explore alternative supply chains to reduce risk.
Market Update
Indian companies are closely watching trade developments with China, as supply chain costs and global demand will determine import volumes in FY26.
Key Insights
Import dependence exceeds $30 billion in FY25.
China holds near-monopoly in 59 categories.
Dependency has worsened post-pandemic, not eased.
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