Did China Contribute 26.6% to India's Auto Component Imports in FY25?
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Synopsis
India's reliance on Chinese auto components is highlighted, with China contributing 26.66% to India's imports in FY25. As the government implements various initiatives to reduce dependency on Chinese products, notable growth in India's manufacturing sector is evident. Discover the implications and future prospects of India's auto component imports and manufacturing landscape.
Key Takeaways
- China accounted for 26.66% of India's auto component imports in FY25.
- India's total auto component imports reached $7,174.73 million.
- Government initiatives aim to reduce reliance on Chinese products.
- India is focusing on boosting domestic manufacturing through various schemes.
- Mobile phone exports have increased significantly, positioning India as a major manufacturer.
New Delhi, Aug 19 (NationPress) During the financial year 2024-25 (FY25), India imported auto components valued at $7,174.73 million, with $1,912.82 million sourced from China, as reported to Parliament on Tuesday.
This indicates that China contributed 26.66% of India's total auto component imports, as stated by Minister of State for Commerce and Industry, Jitin Prasada, in a written response during a Lok Sabha session.
India's overall imports from China reached $98.50 billion in 2022-23 and $101.74 billion in 2023-24, accounting for 13.76% and 15% of total imports, respectively.
Key categories of imports from China include electronics, telecom devices, computer hardware, industrial machinery, organic chemicals, and bulk pharmaceuticals, with certain sectors exhibiting reliance levels as high as 74%, according to data presented in the Lok Sabha.
The government recognized that a significant portion of India's imports from China consists of raw materials, intermediate goods, and capital goods, which are essential for manufacturing finished products in rapidly growing sectors such as electronics, pharmaceuticals, telecom, and renewable energy.
To mitigate strategic dependence on Chinese products, various policy initiatives have been implemented.
These initiatives include the Production Linked Incentive (PLI) schemes across 14 key sectors including electronics, IT hardware, pharmaceuticals, bulk drugs, solar modules, and auto components, with a total budget of Rs 1.97 lakh crore.
Other measures such as the Electronics Components Manufacturing Scheme (Rs 22,919 crore), PLI for bulk drugs (Rs 6,940 crore), solar PV module incentives (Rs 24,000 crore), and PLI for advanced automotive technologies (Rs 25,938 crore) are also in place to promote domestic production.
Additionally, initiatives like ‘Make in India’, PM Gati Shakti, National Logistics Policy, and Industrial Corridor projects are focused on developing competitive domestic supply chains.
The government is also utilizing trade remedial actions through the Directorate General of Trade Remedies (DGTR) to address unfair imports.
Officials pointed out that there has been progress in certain sectors. India has transformed into a net exporter of mobile phones and bulk drugs in recent years, aided by the PLI initiatives.
For example, mobile phone exports surged from Rs 1,500 crore in 2014-15 to over Rs 2 lakh crore in 2024-25, positioning India as the world's second-largest mobile manufacturer.
Point of View
It's clear that while India has made strides in reducing its dependency on Chinese imports, the path towards complete self-reliance is fraught with challenges. The government’s initiatives reflect a commitment to strengthening domestic manufacturing, yet the journey requires continuous effort and strategic planning.
NationPress
19/08/2025
Frequently Asked Questions
What percentage of auto components does China supply to India?
China supplies 26.66% of India's total auto component imports.
What was India's total auto component import value in FY25?
India's total auto component imports in FY25 were valued at $7,174.73 million.
How much did India import from China in FY25?
India imported $1,912.82 million worth of auto components from China in FY25.
What initiatives is the Indian government implementing to reduce reliance on Chinese imports?
The Indian government has launched various initiatives, including Production Linked Incentive schemes, to promote domestic manufacturing and reduce reliance on Chinese products.
What sectors are targeted by the Production Linked Incentive schemes?
The PLI schemes target key sectors such as electronics, IT hardware, pharmaceuticals, bulk drugs, solar modules, and auto components.
