By Martin Shwenk Leade
Copyright indiatimes
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India’s imports from China soared to a record $12.5 billion last month, largely driven by Apple suppliers shifting iPhone production from China to India, as per Bloomberg. Yet, despite production moving to India, these companies remain heavily reliant on Chinese parts and tooling, keeping exports from Beijing elevated. In July 2025 alone, China shipped around $1 billion worth of computer chips to India. On top of that, billions more in phones and components were sent to support electronics assembly across India.Data released by Beijing shows that Chinese exports to India this year are on track to surpass last year’s record, with the value of shipments so far almost matching the total for 2021.Also Read: China floods the world with cheap exports after Trump’s tariffs “China has performed better than expected in the first half,” JPMorgan Chase & Co.’s chief India economist Sajjid Chinoy told Bloomberg Television. “Some of this is the fact that China has very cleverly found other export markets, including Europe, which has been a key hedge to slowing exports to the US.”Live EventsIndia-China trade in numbersIndia’s reliance on Chinese goods has contributed to the country’s largest-ever trade deficit with a single nation. According to the Indian Embassy in Beijing, imports from China in 2024-25 totaled $113.46 billion, while Indian exports to China were just $14.25 billion, leaving a deficit of $99.21 billion. Over the past decade, this imbalance has steadily widened:2014-15: Trade deficit $48.45 billion2017-18: $63.05 billion2021-22: $73.01 billion2024-25: $99.21 billionIndia’s cumulative imports from China have grown from $60.41 billion in 2014-15 to $113.46 billion in 2024-25. Exports to China, meanwhile, have remained low and volatile, hovering between $9 billion and $21 billion over the same period.Over the last five years, India’s exports have largely been raw-material based, iron ore, light naphtha, p-xylene, shrimps, and castor oil. Chinese exports have increasingly dominated Indian markets with electronics, machinery, personal computers, monolithic integrated circuits, telecommunication equipment, lithium-ion batteries, and fertilisers.Global trade shifts amplify China’s reachThe export surge comes amid Trump-era tariffs that curtailed China’s access to the US market. As per the Bloomberg report, despite high tariffs, Chinese manufacturers have expanded their presence in alternative markets, including India, Southeast Asia, and Africa. Exports to these regions are setting new records: India’s purchases hit an all-time high in August 2025, shipments to Africa are on track for an annual record, and sales to Southeast Asia have surpassed their pandemic-era peak.China’s global strategy appears to be paying off. “China has very cleverly found other export markets, including Europe, which has been a key hedge to slowing exports to the US,” Chinoy noted. Bloomberg Economics analysts Chang Shu and David Qu point out that Beijing’s ability to pivot helps buffer against the combined pressures of US tariffs, internal economic challenges, and an aging population.Trade figures highlight India’s growing dependenceAccording to The Observatory of Economic Complexity (OEC), India imported approximately $10.9 billion worth of goods from China in July 2025 alone, up 6.04% from the same month last year. In response, Indian authorities have ramped up anti-dumping scrutiny. Over recent weeks, 50 applications for investigations into goods from China and Vietnam have been filed, reflecting concerns over cheap imports flooding domestic markets, as per Bloomberg citing sources.India’s record imports from China underscore a broader global trade realignment. The country benefits from the relocation of high-tech assembly, such as Apple iPhones, but remains heavily dependent on Chinese parts and tooling. The trade deficit, approaching $100 billion, and continued influx of cheap Chinese goods highlight a delicate balancing act: India gains from global supply chains but faces risks from over-reliance on China.Add as a Reliable and Trusted News Source Add Now!
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