India’s import dependence on China is far more entrenched than just day-to-day consumer goods. A closer look at trade data reveals that reliance spans across a wide range of products—from seemingly trivial items like combs and nail cutters to critical industrial inputs such as railway parts and active pharmaceutical ingredients (APIs). This persistent imbalance highlights the scale of India’s challenge in reducing its reliance on Beijing, despite ongoing policy pushes for self-reliance and domestic manufacturing.
Household Goods: Chinese Dominance in Everyday Products
China’s overwhelming presence is most visible in low-value consumer items. Categories such as hot water bottles, torches, table fans, and toasters record Chinese market shares above 95%. Even smaller household staples—combs, nail cutters, bread boards, and vacuum flasks—see import dependence exceeding 97%.
This dominance has grown starker post-pandemic. Leather sofa covers and cigarette lighters, where China’s share was once negligible, are now sourced almost entirely from Beijing. Similarly, jewellery boxes, pen holders, and cellophane film, earlier imported from multiple countries, have shifted overwhelmingly toward Chinese suppliers.
Experts say this is a structural problem. According to Anil Bhardwaj, Secretary General of the Federation of Indian Micro Small & Medium Enterprises (FISME), “Most of the day-to-day items produced by MSMEs lack scale and technological sophistication with which Chinese produce at a competitive price and better design. Non-availability of special material (specialised steel for nail clippers for example) is also a constraint.”
Signs of a Slow Shift
There are limited signs of clawback in some categories. Imports of toasters and table fans from China have halved over the past decade, reflecting targeted domestic manufacturing pushes. Yet, in other categories, the reliance has only intensified.
For instance, weighing machine imports from China doubled to $18 million in FY25 compared with FY18. Similarly, lighter imports surged from a negligible $0.28 million seven years ago to $10 million in FY25.
Paras Jasrai, Associate Director at India Ratings and Research, explained the divergence: “Due to gaps in metallurgical capacity and lack of competitive manufacturing, India continues to import nail cutters from China. On the other hand, targeted policies, incentives, and quality regulations have enabled a successful shift towards domestic production of toasters, sharply reducing dependence on Chinese imports for these goods.”
Industrial Inputs: A Bigger Worry
While household products draw attention, India’s growing reliance on China for industrial inputs is arguably more concerning. Imports of axles and wheels for railway wagons surged sevenfold to $153 million in FY25, with China’s share now exceeding 90%, up from 62% in FY19. Other categories such as freezers and cast-iron pans, once sourced from multiple geographies, are now also overwhelmingly Chinese.
The situation is especially acute in pharmaceuticals. An earlier Moneycontrol analysis revealed that in over $30 billion worth of imports, India remains heavily dependent on China.
- In 59 product categories worth $1.3 billion, largely linked to antibiotics like streptomycin, China accounts for virtually 100% of India’s imports.
- In another $5 billion worth of imports, including APIs and display products like LCDs and OLEDs, China supplies more than 90%.
- A further $19 billion lies in the 75–90% dependence range, covering items such as furnaces, ovens, and personal computers—with PCs alone accounting for nearly $4 billion.
This dependence poses risks to India’s industrial ecosystem, where a sudden disruption in supply chains—whether due to geopolitical tensions or trade restrictions—could stall production across multiple sectors.
The Policy Challenge
India’s government has rolled out several initiatives under Atmanirbhar Bharat and Make in India to reduce dependence on imports, particularly from China. Production-linked incentive (PLI) schemes for electronics, APIs, and renewable energy equipment are designed to shift the needle.
However, the reality remains complex. Chinese suppliers often undercut Indian manufacturers on cost and design efficiency, while India continues to face gaps in raw material availability, scale of production, and specialised technology. In some cases, as with nail clippers, the absence of metallurgical expertise in producing specialised steel acts as a structural barrier.
Moreover, the Chinese advantage is not limited to consumer goods—it extends into critical industrial sectors where India’s capacity is still developing. This leaves policymakers with a dual challenge: protecting strategic industries while simultaneously encouraging domestic production in everyday consumer categories.
Looking Ahead
India’s dependence on China is unlikely to disappear in the short term. While niche successes—such as reduced imports of toasters—offer a template for targeted industrial policy, replicating that success across the wider import basket will require substantial investment, technology transfer, and upskilling.
At the same time, India is working to diversify sourcing through trade agreements with other Asian and Gulf economies. However, breaking China’s hold across categories as diverse as antibiotics, electronics, and railways will remain a long-term project.
Until then, the India-China trade equation will continue to reflect a paradox: a fast-growing Indian economy still tied closely to Chinese supply chains, even as geopolitical and strategic concerns urge decoupling.
Summary
- Household Products: China commands over 95–97% share in low-value imports like nail cutters, combs, toasters, and vacuum flasks.
- Post-Pandemic Shift: Items once sourced globally—like lighters and sofa covers—are now almost entirely Chinese imports.
- Industrial Inputs: Dependence is deepening in critical sectors, with over 90% of railway axles and wheels now sourced from China.
- Pharma Reliance: APIs and antibiotics highlight near-total reliance, with $30+ billion worth of imports linked to Chinese suppliers.
- Policy Impact: Targeted schemes have helped reduce imports in select categories but gaps in raw materials, scale, and technology remain.
- Outlook: Diversification and domestic capacity-building will be key, but reducing dependence on China is a long-term challenge.
Link-
https://www.moneycontrol.com/news/business/economy/india-s-dependence-on-china-extends-beyond-nail-clippers-into-drugs-and-railways-13489747.html
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