India's dependency on China upstream imports on the rise: McKinsey report

India is becoming increasingly dependent on upstream imports from China for goods that are then exported to markets such as the US and Europe, according to McKinsey & Company’s research on shifting patterns of global trade.

 

At the same time, India’s exports to China are declining, suggesting an emerging asymmetrical trade relationship between the world’s two largest developing economies.

 

India’s trade evolution is evident in its rising imports from China, which grew in value by an average of 6 per cent per year between 2017 and 2023. This increase was driven by chemicals (including pharmaceuticals) and machinery, where imports grew