Warning Bells Ring As India Drowns In Chinese Imports

NEW DELHI — India’s trade gap with China has reached an all-time high, and officials are getting increasingly uneasy. New government data shows that India ended the 2024–25 fiscal year with a massive $99.2 billion trade deficit with its northern neighbor — and it’s not just the numbers that are raising eyebrows.

In total, India imported $113.5 billion worth of goods from China over the past 12 months.

Ironically, even India’s booming sectors — like electronics, pharma, and engineering — are part of the problem.

Many of these industries still depend heavily on Chinese components to power their growth, pulling in more imports even as India pushes to boost exports.

But while the imports are climbing, exports to China are doing the opposite. India’s shipments dropped by 14.5% in March, with total annual exports falling to just $14.3 billion — even lower than what India exported to China over a decade ago in 2013–14.

Trade experts say with the U.S. recently slapping higher tariffs on a range of Chinese goods, there’s growing concern that Chinese manufacturers may be looking to offload excess products in other markets — including India.

There’s a real risk that India could become a dumping ground.

In response, the Indian government is setting up a special monitoring unit to track a possible surge in low-cost imports, especially from countries like China.

Officials also issued a warning to Indian firms: don’t help foreign companies bypass U.S. tariffs by rerouting exports through India. (Courtesy: https://indiawest.com/)