ECONOMY
GTRI red-flags $100-bn trade deficit with China, calls for slashing Chinese imports
- IBJ Bureau
- Aug 21, 2025
Global Trade Research Initiative (GTRI) has highlighted the urgent need to cut down India’s imports from China
The economic think-tank has noted that India has had a $100-billion trade deficit with the neighbouring country in FY25. It has also highlighted that over the past decade, China’s share in India’s import basket has only grown.
Telecom and electronics imports from China now account for 57.2 per cent, while machinery and hardware make up around 44 per cent. Chemicals and pharmaceuticals follow closely at 28.3 per cent.
The think-tank has pointed out that in antibiotics like erythromycin, China supplies 97.7 per cent of India’s requirements. In electronics, it controls 96.8 per cent of silicon wafers and 86 per cent of flat panel displays. Solar cells and lithium-ion batteries from China make up 82.7 and 75.2 per cent of India’s imports in the renewable energy sector. Everyday products such as laptops, embroidery machinery, and viscose yarn are also largely sourced from China.
The think-tank has noted that India’s exports to China have declined sharply, reducing India’s share in bilateral trade to just 11.2 per cent today from 42.3 per cent two decades ago. Such structural dependence exposes India to serious geopolitical risks and highlights the urgent need for domestic production capacity and resilient supply chains, GTRI has warned.
Report By
View Reporter News