China Supplies 80% Of India’s Electronics Imports Across 71 Product Categories: Study

China supplies over 80% of India's electronics imports across 71 product categories, according to a new study conducted by Koan Advisory Group and the Institute of Chinese Studies. The report analyzed trade patterns between India and China at a detailed product level, focusing on electrical and electronic equipment under HS Chapter 85.

The percentage of India's imports from China in electronics categories has risen from 44 in 2018-19 to 71 in 2025-26, indicating a significant increase in import concentration. This dependence primarily stems from critical components used in telecom infrastructure, consumer electronics, and industrial machinery, rather than finished products.

The report notes that China's share in India's trade deficit has reached $112.1 billion, with electrical machinery accounting for $43.1 billion, or nearly 38%. Lithium-ion batteries have become a significant concern, with imports from China increasing to $3.9 billion, marking 83.6% of this segment. China's dominance in semiconductor imports stands at 48.9%, although it has declined from around 64% the previous year.

The study suggests that merely restricting imports will not solve the issue, as the dependence lies at the component level. To address the trade deficit, the report recommends expanding domestic upstream manufacturing, backed by critical mineral policies and selective partnerships when local alternatives are limited. The ultimate goal is to shift from persistent reliance on imports towards locally embedded manufacturing capacity.