Import of laptops, PCs, medical devices, solar cells from China fall in FY23: GTRI

NEW DELHI: India’s imports of electronic goods such as laptops, personal computers (Pcs), integrated circuits and solar cells from China declined during 2022-23, according to a report by economic think tank GTRI. The fall in imports is notable in electronic items where the PLI (production linked incentive) scheme is operational, the report by Global Trade ResearchInitiative(GTRI)said.

Import of medical equipment declined 13.6 per cent to USD 2.2 billion last fiscal year as compared to 2021-22. Similarly, import of solar cells, parts, diodes slumped 70.9 per centtoUSD1.9billionin2022-23.Thereportstatedthatimport of laptops, PCs slipped 23.1 per cent to USD 4.1 billion and that of mobile phonescame down by 4.1 per cent to USD 857 million inlastfinancialyearascomparedto2021-22.

Inbound shipments of integrated circuits contracted by 4.5 per cent to USD 4.7 billion. Import of urea and other fertilizers declined 26 per cent to USD 2.3 billion in 2022-23. However, import of lithium-ion batteries surged about 96 per cent to USD 2.2 billion last fiscal year, it said adding the adoptionofelectricvehiclesmayincreasesuchimportssteeply.

“India’s imports from China have shown signs of slowing down, with three data points indicating a decline.

Firstly, India’s electronics imports from China have decreased from USD 30.3 billion in FY22 to USD 27.6 billion in FY23. Secondly, India’s total goods imports from China grew at a lower rate of 4.2 per cent during FY23, compared to global imports, which grew at a higher rate of 16.1 per cent,” GTRIco-founderAjaySrivastava said.

Despite the decline, China remains India’s top import supplier, and India is critically dependent on China for various products, the report said, adding “Imports from China are high for most countries and India is not an outlier”. India’s total goods import from China during 2022-23 touched about USD91billion.ItwasUSD94.6billionin2021-22.

Further at the exports front, China is India’s fourth largest export destination, with the US, UAE, and Netherlands as the top three partners. Indian exports grew to all these three nations but declined for China in the last fiscal. The country’s outbound shipments to China declined 36 per cent to USD 13.6 billion in 2022-23. Srivastava said India’s fate in electronics and computer hardware production was sealed withIndia’ssigningoftheInformationTechnologyAgreement (ITA) in 1997 that made importing any import duties on such productsillegal.