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

China has become the dominant supplier for a large number of electronics components imported by India, with a new study showing that the country accounted for more than 80% of imports across 71 product categories in 2025-26.

The report, prepared jointly by Koan Advisory Group and the Institute of Chinese Studies, analysed India-China trade patterns at a detailed product level, focusing on electrical and electronic equipment covered under Harmonized System (HS) Chapter 85, Business Standard reported.

The number of electronics categories where China supplied over 80% of India’s imports has increased sharply, rising from 44 in 2018-19 to 71 in 2025-26. Of these, 46 categories crossed the 80% dependence mark only after 2018-19, indicating a rise in import concentration.

Electronics components remain key area of dependence

The study noted that India’s dependence is mainly linked to critical components used in telecom infrastructure, consumer electronics and industrial machinery rather than finished products.

"The large number of tariff lines in the 90–99 per cent band highlights how deeply embedded Chinese sourcing has become in India's electronics imports," the report said.

India’s trade deficit with China reached $112.1 billion in 2025-26, with electrical machinery accounting for $43.1 billion, or nearly 38% of the overall gap.

Lithium-ion batteries have emerged as a major concern, with India’s imports from China rising to $3.9 billion. China’s share in this segment increased to 83.6%, making batteries a strategic challenge for India’s electronics and electric vehicle ecosystem.

Need for domestic component manufacturing

The report also highlighted that China accounted for 48.9% of India’s semiconductor imports, although its share declined from around 64% a year earlier.

The study said restricting imports alone would not address the issue as the dependence exists largely at the component level. "As long as the components feeding Indian assembly lines continue to originate almost entirely from China, the trade deficit in this chapter will remain structurally anchored, regardless of growth in domestic electronics output," it said.

The report recommended expanding domestic upstream manufacturing, supported by critical mineral policies and selective partnerships where local alternatives are limited.

“The ultimate objective is a calibrated shift from persistent reliance on imports toward locally embedded manufacturing capacity,” the report concluded.