Lok Sabha Question No. 4023 (UNSTARRED), answered on 2025-03-25
Subject: Trade Deficit with China
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Gurjeet Singh Aujla

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 4023 ANSWERED ON 25/03/2025

## TRADE DEFICIT WITH CHINA

## 4023.  SHRI GURJEET SINGH AUJLA:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मं त्री ) be pleased to state:

(a) the  details  of  imports  and  exports  between  India  and  China  including  their  respective values during the last ten years;

(b) whether import dependency on China increased particularly in critical sectors during the last five years and if so, what has been the resulting trade deficit, specifically in the plastic and solar industry, year-wise;

(c) the details of steps taken by the Government to reduce India's trade deficit with China, strengthen domestic manufacturing and promote self-reliance in key industries;

(d) the details of promotion steps taken for industry and any survey to set up industries at border belt of Amritsar to make it potential made in India; and

(e) the details of allotting special package for industrial growth for Amritsar border belt?

## ANSWER

## वाणिज्य और उद्योग मं त्रालय में राज्य मं त्री ( श्री णिणिन प्रसाद )

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

(a) The details  of  imports  and  exports  between  India  and  China  including  their  respective values during the last ten years can be accessed from website of Department of Commerce i.e. https://tradestat.commerce.gov.in/eidb/default.asp.

(b) & (c) Most of the goods imported from China are raw materials, intermediate goods and capital  goods,  like  Active  Pharmaceutical  Ingredients,  auto  components,  electronic  parts  and assemblies, mobile phone parts, machinery and its parts, etc. which are used for making finished products which are also exported out of India. These goods are imported to meet the demand of fast expanding sectors like electronics, pharma, telecom and power, in India. India's dependence on imports in these categories is largely due to the gap in domestic supply and demand.

Government  of  India has taken several initiatives to enhance domestic supply, reduce dependency  on  imports  and  promote  self-reliance.  Under  'Make  in  India'  initiative,  the Government has launched Production Linked Incentives (PLI) Schemes in 14 critical sectors like High efficiency Solar PV  modules, electronics, pharmaceuticals, active pharmaceuticals ingredients  (APIs),  white  goods,  telecom  and  Networking  products,  etc.,  where  there  is

substantial dependency on imports. The PLI scheme for High Efficiency Solar PV Modules, for achieving domestic manufacturing capacity of Giga Watt (GW) scale in High Efficiency Solar PV modules has an outlay of Rs. 24,000 crore.

The Government has also introduced stricter quality standards and measures for quality controls, testing protocols, and mandatory certification to check substandard & poor-quality products in the market and protect consumers' interest. For plastic sector, to curb the import of sub-standard plastic and to improve the quality of plastic produced in the country, standards of the products have  been  made  mandatory  under  the  Bureau  of  Indian  Standards  (BIS)  Act  2016.  Quality Control Orders for Polyethylene Material for Moulding & Extrusion and Acrylonitrile Butadiene Styrene (ABS) have been implemented.

The Government encourages Indian business establishments to explore alternative suppliers to diversify  their  supply  chains  and  reduce  dependency  on  single  sources  of  supply.    The Government  monitors  the  surge  in  imports  on  a  regular  basis  and  takes  appropriate  action. Further, the Directorate General of Trade Remedies (DGTR) is empowered to recommend trade remedial actions against unfair trade practices.

(d) & (e) Under National Industrial Corridor Development Programme (NICDP), as part of the  Amritsar  Kolkata  Industrial  Corridor  (AKIC),  an  Integrated  Manufacturing  Cluster  (IMC) Rajpura - Patiala (1,098.85 acre) in the State of Punjab was approved by Government of India in August 2024 with an estimated project cost of Rs. 1367.72 crore (including land).

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