India can add $20 bn to GDP if import dependence on China halved: SBI

In terms of imports, India continued to reduce its trade deficit with China in fiscal 2020-21 (FY21).

However, in FY21, out of the $65 billion of imports from China, around $39.5 billion were commodities and goods where PLI scheme has been announced (textile, agri, electronics goods, pharmaceuticals and chemicals).

In the April-December period of FY22, there were 6,367 products with a total value of $68 billion (or 15.3 per cent of the total imports) imported by India from China.

"The maximum aggregate value ($9.7 billion) is of the products in which our import dependence on China is between 50-60 per cent, although the number of products is lower….Although number-wise, the imports were highest in the category where our dependence was lowest (0-10 per cent), the value is not that high at around $1,894 million," the report said.

"If India wants to wean itself off its dependence on China, capabilities have to be developed in these areas, especially chemicals, textiles, footwear, so that both inputs and final consumer goods in these low value imports can be manufactured domestically," the report added, saying India should integrate more and more into the global value chains.

ALCHEMPro News Desk (DS)