Context:
China becomes India’s top trading partner in FY 2024 according to the think tank Global Trade Research Initiative
Key Findings:
- India’s bilateral trade with China reached at $118.4 billion in the fiscal year 2024.
- China replaced the United States (US) which was India’s top trading partner during FY22 and FY23.
- India’s exports to China witnessed a marginal decline by 0.6%, while imports from China surged by 44.7%.
- China’s share in India’s electronics sector import (including telecom) is about 43.9%.
- India’s pharmaceutical sector is highly dependent on China’s Active Pharmaceutical Ingredients (APIs).
- India’s import of lithium-ion batteries for electric vehicles, primarily from China, was valued at $2.2 billion, representing 75% of such imports
Initiatives taken to reduce Dependency on China:
- Make in India initiative
- Production-linked incentive (PLI) schemes for domestic manufacturing capacities in critical sectors like Medical devices, electronic components, etc.
- Promotion of Bulk Drug Parks, reducing import dependency for APIs
- Imposing Anti-dumping duties
Source: Economic Times
Previous Year Question
‘Global Financial Stability Report’ is prepared by the:
[UPSC Civil Service Exam – 2016 Prelims]
(a) European Central Bank
(b) International Monetary Fund
(c) International Bank for Reconstruction and Development
(d) Organisation for Economic Cooperation and Development
Answer: (b)
