Indian Businesses Hope for Improved Relations with China

Indian Businesses Hope for Improved Relations with China
Following tensions at the border and the Galwan Valley incident, there is renewed hope among Indian businesses for better relations with China, especially as the Indian government has taken steps to improve bilateral trade. Despite the strained relations over the past four years, recent trade figures indicate a shift, albeit gradual.
In the first half of the financial year 2024 (April to September), exports to China reached $6.91 billion, reflecting a modest increase. However, imports from China surged by 40%, reaching $56.29 billion in the same period, indicating China's substantial share in India’s import market.
Key Import Statistics:
•    India’s dependency on Chinese imports includes:
o    Electronics and Telecom Equipment: 38.7%
o    Textiles and Clothing: 41.5%
o    Machinery: 38.5%
o    Chemicals and Pharma: 28.7%
o    Automobiles: 23.2%
India remains a major market for China, holding the top position for several Chinese products. The value of imports has grown significantly, and India’s dependence on Chinese goods like plastics, toys, and electronic components continues to pose challenges for local manufacturers.
Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), noted that while China continues to be a dominant trade partner, India is making efforts to diversify and reduce reliance on Chinese products. However, achieving a balanced trade relationship will require significant effort.

Anti-Dumping Duties on Chinese Products
New Delhi, Press: India has imposed anti-dumping duties on five major Chinese products to protect local industries. This includes chemicals, toys, and certain electronic items. The duty aims to curb cheap imports and support Indian manufacturers in competing against low-cost Chinese products.