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The Economic Times
The Economic Times
4w ago 40 views

India continues to buy more from China as cheap exports pour in

India's imports from China reached a record $12.5 billion, driven by Apple suppliers relocating production, yet reliance on Chinese components persists, leading to a significant trade deficit.
India continues to buy more from China as cheap exports pour in
A What happened
In August 2025, India's imports from China hit a record $12.5 billion, primarily driven by Apple suppliers relocating iPhone production to India. However, these suppliers continue to depend heavily on Chinese parts, maintaining high export levels from China. The trade deficit with China has reached approximately $100 billion, with imports totaling $113.46 billion against exports of only $14.25 billion. This growing imbalance has been evident over the past decade, with imports increasing significantly while exports have remained low and volatile. The surge in imports is also attributed to China's strategic pivot to alternative markets, including India, as it faces challenges in the US due to tariffs. Indian authorities have responded by increasing anti-dumping scrutiny on Chinese goods, reflecting concerns over the impact of cheap imports on domestic markets. Overall, while India benefits from global supply chains, it faces risks associated with its over-reliance on Chinese products.

Key insights

  • 1

    Record Imports

    India's imports from China reached $12.5 billion in August 2025.

  • 2

    Trade Deficit

    India's trade deficit with China is nearing $100 billion.

  • 3

    Dependency on China

    India remains heavily reliant on Chinese components despite local production.

Takeaways

India's increasing imports from China underscore the complexities of its trade relationships and the challenges of reducing dependency.