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Worrying: Over 30% of India's industrial goods come from China
28 Apr 2026

India is heavily dependent on China for its industrial goods, with the latter accounting for a whopping 30.8% of the country's requirements, think tank Global Trade Research Initiative (GTRI) revealed.

The figure is much higher than China's overall share in India's imports, which stands at around 16%.

The GTRI's analysis highlights this overdependence and its potential impact on India's manufacturing sector.

Electronics, machinery, organic chemicals dominate imports
Import breakdown

In the fiscal year 2025-26, India's total imports surged to $774.98 billion, with China accounting for a significant $131.63 bi

The GTRI report highlights that around 66% of these imports from China ($82.6 billion) are concentrated in electronics, machinery, computers, and organic chemicals.

This heavy reliance on a single supplier for critical inputs leaves sectors like pharmaceuticals and clean energy vulnerable to disruptions, be it geopolitical or commercial.

China a key player in India's manufacturing ecosystem
Sectoral impact

China dominates India's imports in several key sectors. It accounts for 43% of electronics imports, 40% of machinery and computer imports, and 44% of organic chemicals.

"These are not discretionary purchases but core inputs that feed directly into India's manufacturing ecosystem," said Ajay Srivastava, Founder of GTRI.

He added that the Indian industry relies heavily on Chinese inputs such as electronics parts, EV batteries, solar modules among others.

Need for India to diversify supply chains
Strategic shift

GTRI suggests India should diversify its supply chains and build domestic capacity in key sectors. "A practical starting point would be to limit dependence on any single country to below 30% of imports in critical sectors," Srivastava said.

Trade deficit with China widens
Trade imbalance

India's trade figures also show a widening deficit with China.

Exports to the country are stuck below FY2021 levels at $19.5 billion, while the imports have more than doubled to $131.6 billion in FY2025-26.

This has pushed the trade deficit to a staggering $112.1 billion for the fiscal year 2025-26.