India sourced 26.6% of its $7.17 bn auto component imports from China in FY25. The government is boosting domestic production through PLI schemes and Make in India
New Delhi
India imported auto components worth $7,174.73 million in the financial year 2024-25 (FY25), of which $1,912.82 million, or 26.66%, came from China, the Parliament was informed on Tuesday. Minister of State for Commerce and Industry, Jitin Prasada, provided this data in a written reply to a Lok Sabha query.
India’s overall imports from China stood at $98.50 billion in 2022-23 and $101.74 billion in 2023-24, representing 13.76% and 15% of total imports, respectively. Key categories of imports from China include electronics, telecom instruments, computer hardware, industrial machinery, organic chemicals, and bulk drugs, with dependency in some sectors reaching as high as 74%.
The government noted that a significant portion of these imports consists of raw materials, intermediate goods, and capital equipment, which are crucial for manufacturing finished products in high-growth sectors such as electronics, pharmaceuticals, telecom, and renewable energy.
To reduce strategic dependence on Chinese products, India has launched several policy initiatives. The Production Linked Incentive (PLI) schemes span 14 sectors, including electronics, IT hardware, pharmaceuticals, solar modules, and auto components, with a total outlay of ₹1.97 lakh crore. Additional measures include the Electronics Components Manufacturing Scheme (₹22,919 crore), PLI for bulk drugs (₹6,940 crore), solar PV incentives (₹24,000 crore), and PLI for advanced automotive technologies (₹25,938 crore).
Complementary initiatives like ‘Make in India’, PM Gati Shakti, National Logistics Policy, and Industrial Corridor projects aim to strengthen domestic supply chains. Trade remedial actions via the Directorate General of Trade Remedies (DGTR) are also employed against unfair imports.
These efforts are yielding results: India has become a net exporter of mobile phones and bulk drugs. Mobile phone exports, for example, surged from ₹1,500 crore in 2014-15 to over ₹2 lakh crore in 2024-25, establishing India as the world’s second-largest mobile manufacturer.
