Indian politicians are presently leading a campaign to boycott Chinese goods. But an India Spend analysis shows why this will fail: China is India`s biggest trade partner, a sixth of India`s imports are Chinese, up from a 10th in 2011-12, while India`s exports to its rival have halved over the same period.
Imports from China grew at 20 % over two years and 5 % over five years, to $61 billion. These goods range from power plants and set-top boxes to Ganesh idols. This is despite the fact that India`s imports have mainly fallen over the last five years — from $490 billion (Rs 23 lakh crore) to $380 billion (Rs 25 lakh crore) –because of a fall in global oil prices.
India`s exports to China have fallen from $18 billion (Rs 86,000 crore) in 2011-12 to $9 billion (Rs 58,000 crore) in 2015-16. Apart from cotton, copper, petroleum & industrial machinery, India does not export much to China. This means that India buys six times the merchandise it sells to China.