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India’s demand for Chinese goods is surging

New Delhi: According to data released by China’s General Administration of Customs this month, India’s total imports from China in 2021 hit a new high of $97.5 billion, accounting for a larger share of the two countries’ total trade of $125 billion. It was also the first time that bilateral trade exceeded the us $100 billion mark.
According to analysis of Commerce Ministry data, 4,591 items out of 8,455 items imported from China rose in value between January and November 2021.
Santosh Pai of the Institute of Chinese Studies in India, who analysed the figures, concluded that imports of the top 100 goods amounted to $41 billion in value terms, up from $25 billion in 2020. The top 100 import categories each had a trade volume of more than $100 million, including electronics, chemicals and auto parts, with most of them showing sharp increases in imports. Some manufactured and semi-finished goods are also included in the 100 goods list.
In the former category, imports of integrated circuits rose 147 percent, laptops and personal computers 77 percent, and oxygen therapy equipment more than quadrupled, the report said. Semi-finished goods, particularly chemicals, also showed surprising growth. The import of acetic acid was more than eight times that of the past.
The report said the increase was partly due to the recovery of domestic demand for Chinese manufactured goods and industrial recovery. India’s growing exports to the world have boosted its demand for many important intermediate goods, while supply chain disruptions elsewhere have led to increased purchases from China in the short term.
While India is sourcing manufactured goods such as electronics from China on an unprecedented scale for its own market, it also relies on China for a range of intermediate goods, most of which cannot be sourced elsewhere and India does not produce enough at home to meet demand, the report said.


Post time: Mar-16-2022