China's share in India's import basket has declined to 13.79 per cent in 2022-23 from 15.43 per cent a year ago, with inbound shipments of major items like fertilisers and electronic goods coming from alternative markets, the Commerce Ministry said on Thursday.
However, in absolute terms, the total imports from China increased to $98.51 billion during the financial year ended March against $94.57 billion in the previous fiscal. As per the latest trade data issued by the Commerce Ministry, India's overall imports increased by 17.38 per cent to $892.18 billion from $760.06 billion in FY 2021-22 (April-March).
Meanwhile, India's exports to China fell to $15.32 billion in FY23 from $21.26 billion a year ago, showing a negative growth of nearly 28 per cent, the data showed.
India's overall exports (Merchandise and Services combined) in FY 2022-23 (April-March) is estimated to exhibit a positive growth of 13.84 per cent to $770.18 billion from $676.53 billion in FY2021-22. The country's trade deficit has widened to $122 billion in FY23 from $83.53 billion, the data showed.
Services exports that led the overall export growth are projected to contribute 41.9 per cent in 2022-23 against 37.62 per cent in 2021-22. Briefing reporters on the trade data, Commerce Secretary Sunil Barthwal said the exports of electronic goods from China and its overall share in India's import basket have declined.
"The decline of Chinese imports has started happening and shows that our manufacturing capacity is improving...The decline of Chinese imports is because we are focusing on sectors where there was a large number of imports, particularly in the electronics sector," he added.
According to the data, India's exports have increased substantially from countries like Russia (369.44%), Indonesia (62.8%), Saudi Arabia (23.31%), Singapore (24.43%) and Korea (21.46%). Imports of electronic goods from China have seen a year-on-year decline of around $2 billion in 2022-23 (April-February). Import share from China in electronic goods has also declined from 48.1 per cent in 2021-22 (Apr-Feb) to 41.9 per cent in 2022-23 (Apr-Feb). Imports have been shifted towards Singapore, South Korea and Vietnam.
A significant fall in share from China was seen in imports of fertilizers -- from 21.9 per cent in 2021-22 (Apr-Feb) to 13.9 per cent in 2022-23 (Apr-Feb) and this accounts for around half a billion fall in imports from China. A major chunk of the demand for fertilizers has shifted toward Russia where import share has increased from 5.21 per cent to 17.2 per cent in 2022-23 (Apr-Feb).
Petroleum products export share in India's total merchandise exports has increased from 15.99 per cent in 2021-22 to 21.12 per cent in 2022-23. Electronic goods export share in India's total merchandise exports has increased from 3.71 per cent in 2021-22 to 5.27 per cent in 2022-23. Smartphones export stood at $9.31 billion during April-Feb 2022-23.
Electronic goods import shares in India's total merchandise imports have declined to 10.82 per cent in 2022-23 from 12.02 per cent in 2021-22. Machinery, electrical and non-electrical, gold, organic and inorganic chemicals, pearls, and precious and semi-precious stones are among the other items whose share has seen a decline.
"India's overall exports (Merchandise and Services combined) in March 2023 is estimated to be $66.14 billion, exhibiting a negative growth of -7.53 per cent over March 2022. Overall imports in March 2023 are estimated to be $72.18 Billion, exhibiting a negative growth of -7.98 per cent over March 2022," the Commerce Ministry stated.
"The impact of economic slowdown in major advanced economies has been visible in global trade. However, India has still managed to minimise the impact by taking several policy measures such as expanding the rupee trade, roll-back of export duty on specified steel products, and easing procedures," EEPC India Chairman Arun Kumar Garodia said.
