Lok Sabha Question No. 1646 (UNSTARRED), answered on 2026-02-10
Subject: Trade Dependence on China and Government Procurement Links
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Deepender Singh Hooda

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY

## DEPARTMENT OF COMMERCE

## LOK SABHA UNSTARRED QUESTION NO.1646 ANSWERED ON 10/02/2026

## MANUFACTURING UNDER ATMANIRBHAR BHARAT

## 1646.  DEEPENDER SINGH HOODA

Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) the total value of India's imports from and exports to China each year since 2014, and the percentage of total trade this constitutes in India's overall importexport balance;
- (b) the key product categories and sectors where India remains most dependent on Chinese imports, including electronics, pharmaceuticals, solar equipment, and telecom;
- (c) whether any Government Ministries, Departments, or Public Sector Undertakings have directly procured goods, parts, or services from Chinese companies since 2014, and if so, the details thereof;
- (d) the measures taken to reduce dependence on Chinese imports and promote domestic manufacturing under the 'Atmanirbhar Bharat' initiative; and
- (e) the targets and timelines fixed, if any, for indigenization or diversification of such imports?

## ANSWER

वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

- (a): The total value of India's imports from and exports to China each year since 2014, and  the percentage  of  total  trade  this  constitutes  in  India's  overall  import-export balance is as under:

(values in USD billion)

| Year    |   India's total trade with China (imports and exports) |   %share of India's total trade with China in India's global trade (imports and exports) |
|---------|--------------------------------------------------------|------------------------------------------------------------------------------------------|
| 2014-15 |                                                  72.34 |                                                                                     9.54 |
| 2015-16 |                                                  70.72 |                                                                                    10.99 |
| 2016-17 |                                                  71.45 |                                                                                    10.82 |
| 2017-18 |                                                  89.71 |                                                                                    11.66 |
| 2018-19 |                                                  87.07 |                                                                                    10.31 |
| 2019-20 |                                                  81.87 |                                                                                    10.39 |

| 2020-21             |   86.4 |   12.59 |
|---------------------|--------|---------|
| 2021-22             | 115.83 |   11.19 |
| 2022-23             | 113.82 |    9.75 |
| 2023-24             | 118.41 |   10.62 |
| 2024-25             | 127.71 |   11.02 |
| 2025-26 (April-Dec) | 110.2  |   12.12 |

(Source: DGCIS)

It may be noted that India's exports to China in FY 2025-26 (April-December) have shown growth of 36.68% over corresponding period in FY 2024-25.

(b) The  major  principal commodities  imported  from  China  are  electronics components,  telecom  instruments,  computer  hardware  and  peripherals,  Industrial machinery for dairy etc, organic chemicals, electronics instruments, electric machinery and equipment etc.

Most of the goods imported from China are capital goods, intermediate goods and raw materials like Active Pharmaceutical Ingredients, auto components, electronic parts and assemblies, mobile phone parts, etc. which are used for making finished products which  are  also  exported  out  of  India.  These  goods  are  imported  for  meeting  the demand of fast  expanding  sectors  like  electronics,  pharma,  telecom  and  power  in India. The  rise in  import  of  electronic  components,  computer  hardware  and peripherals, telephone components, etc. can be attributed to transformation of India into a digitally empowered society and a knowledge economy.

(c)  The Government has issued  'Public Procurement (Preference to Make in India) Order 2017' (PPP-MII Order),   to promote domestic industry   in public procurement of Goods, Works and Services. The Order is applicable to all Ministries or Departments or attached or subordinate Offices or autonomous body controlled by the Government of India and includes Government companies as defined in the Companies Act. The Order  mandates  that  eligibility conditions, including on  matters  like turnover, production capability and financial strength do not result in unreasonable exclusion of 'Class-I local supplier'/ 'Class-II local supplier' from bidding process. Also, specifying foreign certifications/ unreasonable technical specifications/brands/ models in the bid document is considered restrictive and discriminatory practice against local suppliers.

Further, in order to promote self-reliance, make in India and Micro, Small & Medium Enterprises, Government of India (Ministry of Finance) has mandated that no Global Tender Enquiry (GTE) shall be invited for tenders upto Rs. 200 Crores or such limits, as  may  be  prescribed  from  time  to  time.  Further,  the  Government  has  issued guidelines that any bidder from a country which shares a land border with India will be eligible to bid in any procurement whether of goods, services or works only if the bidder is registered with the competent authority.

No  details  of  data  on  procurement  of  goods,  parts,  or  services  by  Government Ministries,  Departments  or  PSUs  from  the  Chinese  companies  are  maintained centrally by Government of India.

(d)  to  (e):    To  enhance  domestic  supply  and  reduce  dependency  on  imports,  the Government has taken several initiatives. 'Make in India' initiative was launched on 25 th

September,  2014  to  promote  India's  manufacturing  domain  in  the  world.  Presently, 'Make in India' 2.0 focuses on 27 sectors implemented across various Ministries/Departments and State Governments.

Keeping in view India's vision of becoming 'Atmanirbhar', the Government has launched Production Linked Incentives (PLI) Schemes with financial outlay of Rs. 1.97 lakh crore in  14  key  sectors  like  electronics,  pharmaceuticals,  white  goods,  telecom  and Networking  products,  High-  Efficiency  Solar  PV  Modules,  etc.,  where  there  is  a substantial dependency on imports. For development of semiconductors and display manufacturing ecosystem, the Government has approved Semicon India Programme with financial outlay of Rs. 76,000 crores.

The Government   encourages Indian business establishments to explore alternative suppliers and to diversify their supply chains to reduce dependency on single sources of supply.

Also,  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  initiate  and  recommend  trade  remedial  actions  against  unfair  trade practices.

The initiatives taken by the Government have led to decline in dependency on imports in several sectors. For example, the import of mobile phones has decreased from Rs 48,609 cr in 2014-15 to Rs 3,710 cr in 2024-25. On the other hand, the export of mobile phones has increased from Rs. 1,566 cr in 2014-15 to more than Rs. 2,05,017 cr in 2024-25.

In  2024-25,  a  decline  in  imports  from  China  was  observed  across  several  sectors compared to the previous year. For example, imports fell sharply in fertilizers (61.4%), followed by residual chemicals and allied products (19.7%), iron and steel (10.3%), and man-made yarn (9.5%).

The indigenization and strengthening of manufacturing capacity is a continuous process and  the  Government  remains  committed  to  ensuring  that  domestic  industry  remain competitive and resilient.

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