Imports of laptops, PCs declined by 23.1 per cent to $4.1 billion and mobile phones by 4.1 per cent to $857 million in the previous fiscal as compared to 2021-22.
Decline in imports is notable in electronic items where PLI scheme is operational
According to a report by economic think tank GTRI, India’s imports of electronic goods such as laptops, personal computers (PCs), integrated circuits and solar cells from China are set to decline during 2022-23.
The Global Trade Research Initiative (GTRI) report said that the decline in imports is significant in electronic goods where the PLI (Production Linked Incentive) scheme is in operation.
Imports of medical devices declined by 13.6 per cent to USD 2.2 billion in the last financial year as compared to 2021-22. Similarly, imports of solar cells, components, diodes are set to decline by 70.9 per cent to $1.9 billion in 2022-23.
The report said that compared to 2021-22, the import of laptops, PCs decreased by 23.1 percent to $ 4.1 billion and mobile phone imports decreased by 4.1 percent to $ 857 million in the last financial year.
Inbound shipments of integrated circuits declined 4.5 percent to $4.7 billion. Imports of urea and other fertilizers to decline by 26 per cent to $2.3 billion in 2022-23.
While imports of lithium-ion batteries rose nearly 96 per cent to USD 2.2 billion in the last fiscal, it said the adoption of electric vehicles could lead to a sharp increase in such imports.
“India’s imports from China have shown signs of slowing down, with three data points indicating a decline. Firstly, India’s electronics imports from China have come down from USD 30.3 billion in FY22 to USD 27.6 billion in FY23. Secondly, India’s total goods imports from China grew at a lower rate of 4.2 per cent during FY2023 as compared to global imports, which grew at a higher rate of 16.1 per cent, said GTRI co-founder Ajay Srivastava.
Finally, China’s share in India’s merchandise imports declined from 16.4 per cent in FY18 to 13.8 per cent in FY23, a decline of 15.7 per cent.
Product categories where the country’s imports from China registered an increase include machinery, chemicals, steel, PVC resin and plastics.
It also said that China’s share in India’s merchandise imports is set to decline from 16.4 per cent in 2017-18 to 13.8 per cent in 2022-23.
Despite the decline, China remains India’s top import supplier, and India is critically dependent on China for various products, the report said, adding, “Imports from China are high for most countries and India is not an outlier.” “.
India’s total merchandise imports from China to reach around USD 91 billion during 2022-23. It was US$ 94.6 billion in 2021-22.
Also on the export front, China is India’s fourth largest export destination, with the US, UAE and Netherlands being the top three partners.
Indian exports to all three countries grew but declined to China in the last financial year. The country’s outbound shipments to China are set to decline by 36 per cent to USD 13.6 billion in 2022-23.
Srivastava said India’s fate in electronics and computer hardware production was sealed with India’s signing of the Information Technology Agreement (ITA) in 1997, which made any import duties on such products illegal.
“PLI is trying to reduce losses in a limited way. Reduction in import of electronic products from China is showing positive results.
“For EV batteries, we must produce lithium-ion cells; For laptop, we should make PCB; For mobile phones, we should be making components and not just the outer shell of the final product,” he said.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
