With more smartphone factories and semiconductor plants making their way to Indian shores, the country is trying to emerge as a viable alternative for China. Chinese smartphone giants and electronics manufacturers have also started making devices locally, to align themselves with the Make in India campaign.
But despite the push for self reliance, India's imports from China have only increased in FY23 by more than 4 per cent to hit $98.5 billion.
Still relying on China?
Although India tries to cut down its dependence on raw materials and other key components from China, its exports to the country dropped by 28 per cent.
This also makes China the biggest source of imports for India, which has been trying to attract manufacturers including Foxconn and Pegatron, with production-linked incentives.
This development has come in the aftermath of Indo-Chinese border tensions, as well as restrictions during a covid surge which hit supply from China.
Chinese imports not bogged down by rising tensions
Apart from bans on Chinese firms, the past year also saw smartphone makers from the country being fined for money laundering and getting raided by tax authorities in India.
When it comes to policy, India is reportedly realistic about importing components from China, which it can't manufacture locally.
Another aspect of this is that despite rising in numbers, Chinese imports dropped in terms of shipments, as fertiliser and electronics from other countries arrived in India.
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