In terms of its trade relation with India, China seems to be having its cake and eating it too. According to a report by LocalCircles, a community social media platform, 62 per cent of Indians said that they purchased 'Made in China' products in the past 12 months. Among the goods purchased, gadgets and mobile accessories claim the top position with 55 per cent respondents indicating that they bought goods that belong to this category.
The survey received responses from over 39,000 people from 387 districts across India. What's noteworthy is that the development comes despite repeated calls from different industry bodies to boycott Chinese goods. Moreover, given the tit-for-tat tariff war between the US and China, the Indian government is considering setting up a monitoring mechanism to prevent dumping.
Beyond economic implications
Economic think tank Global Trade Research Initiative (GTRI), the report highlights, has flagged that beyond economic implications, the influx of Chinese products also poses risks to national security. Recent moves by the Indian government, including blocking about 500 Chinese apps and restricting Chinese vendors in surveillance equipment supply chains, signal a tightening stance.
However, some experts expect India to become a bigger market for Chinese goods, which they say could be beneficial if it boosts domestic manufacturing for re-exports, including to the US, the report added. In response to escalating trade tensions between the US and China, India also anticipates a potential surge in Chinese exports being redirected to its markets. To address this, the government has established a monitoring cell within the Directorate General of Foreign Trade (DGFT) to oversee import patterns and provide assistance to exporters and importers. If any unusual surge is reported, the commerce ministry can take action such as imposing anti-dumping or safeguard duties.
Lagging exports to China
Another data that the report highlights is that between 2019 and 2024, India's exports to China remained largely unchanged at approximately $16 billion per year. In contrast, imports from China grew significantly — from $70.3 billion in 2018–19 to more than $101 billion in 2023–24 — leading to a cumulative trade deficit of over $387 billion over that five-year period.

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