China India's 3rd-largest export market: SBI Research

However, the compounded annual growth rate (CAGR) for India’s overall imports between FY97 and FY21 is 11.1 per cent while that for imports from China is 20.8 per cent, which is almost double, making China India's third biggest importer.

China's share in India's total exports has been rising since FY17 but has fallen to 5.2 per cent in FY22. But the CAGR for Indian exports overall is 10.4 per cent and that for exports to China is 14.8 per cent.

While India’s service exports of telecommunications, computer, and information services far outpace China, the latter is rapidly catching up and India needs to buckle up in these areas, noted the SBI report.

However, India does have a comparative advantage in certain goods where China doesn’t. China has an advantage in several goods, including footwear, textiles and clothing, hides and skins and metals, where India has advantage too.

"India might consider restrictions on certain products in which it has a revealed comparative advantage over China. This will provide support to MSMEs," said Soumya Kanti Ghosh, group chief economic adviser at SBI.

ALCHEMPro News Desk (DS)