India’s Imports From China Slowed Overtime, Exports Grow Faster: Govt Tells Parliament

Why It Matters

The shift signals India’s move toward trade balance improvement and greater manufacturing self‑reliance, reshaping its export competitiveness globally.

Key Takeaways

• Imports from China grew 87.8% vs 618% earlier
• FY24-25 exports to China +38.3%, imports +13.8%
• Mobile phone imports fell to ₹3.71 bn from ₹48.6 bn
• Fertilizer imports dropped 61.4% year‑on‑year
• RoDTEP remission ₹15.76 trillion supports 110k exporters

Pulse Analysis

India’s trade data presented to Parliament underscores a decisive turn away from heavy reliance on Chinese inputs. While imports from China still grew, the rate has fallen to under 10% annually, contrasting sharply with a 38% surge in Indian exports to the same market. The most striking reversals appear in high‑volume categories such as mobile phones, where imports collapsed from ₹48.6 billion in 2014‑15 to just ₹3.71 billion this fiscal year, and fertilizers, which saw a 61.4% drop. These trends reflect a maturing domestic supply chain that is increasingly feeding both local demand and overseas customers.

Policy levers are amplifying this structural shift. The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme has disbursed a record ₹15.76 trillion in FY2026, benefitting more than 110,000 exporters across textiles, marine products, chemicals and engineering goods. Parallelly, the Startup India Seed Fund Scheme has funneled over ₹25.86 billion into 1,382 startups, bolstering innovation in high‑tech manufacturing and services. However, Indian firms still grapple with EU non‑tariff barriers such as REACH, CE marking and stringent residue limits, which constrain market access for chemicals, electronics and agricultural products.

The combined effect of reduced import dependency and robust export incentives positions India to narrow its trade deficit with China and diversify its export basket. A stronger domestic component base lowers exposure to geopolitical supply shocks, while expanded duty remission improves price competitiveness abroad. Yet, sustaining this momentum will require continued investment in quality standards, faster compliance with international regulations, and deeper integration of startups into traditional manufacturing ecosystems. If managed effectively, India could emerge as a more self‑sufficient, export‑oriented economy in the next decade.