Key Details
A Lok Sabha reply provides the value of imports from China across textiles, toys, plastics and engineering goods.
Product Group | 2023-24 | 2025-26 | Change |
|---|---|---|---|
Engineering goods | US$ 53.83 billion | US$ 75.82 billion | 40.9% |
Plastics | US$ 5.67 billion | US$ 6.71 billion | 18.3% |
Textiles | US$ 3.68 billion | US$ 4.46 billion | 21.2% |
Toys | US$ 0.26 billion | US$ 0.35 billion | 34.6% |
Combined | US$ 63.44 billion | US$ 87.34 billion | 37.7% |
Engineering Goods Drive Import Growth
Imports across the four categories increased by US$23.90 billion between 2023–24 and 2025–26, with engineering goods accounting for about 92% of the increase.
The category covers Customs Chapters 84 and 85, including industrial machinery, mechanical and electrical equipment, electronics and components. It is therefore much broader than finished light-engineering goods.
This distinction matters: machinery and intermediate inputs may support domestic production, while finished imports may compete directly with Indian manufacturers. The aggregate data do not distinguish between these effects.
Imports Remain Embedded in Domestic Manufacturing
The Government said imports from China include raw materials, intermediate goods, capital equipment and advanced technologies used across clean energy, EVs, electronics, semiconductors, pharmaceuticals, fertilisers and infrastructure.
Such imports can support Indian manufacturing where domestic alternatives are unavailable or more expensive. But concentration in a single source creates supply-chain exposure to disruptions, trade restrictions and geopolitical risks.
The policy issue is therefore not simply reducing imports, but distinguishing between imports that enable domestic production and dependencies that weaken local manufacturing capacity or supply-chain resilience.
Importantly, the reply provides value but not volume data, and does not specifically assess the impact on MSME clusters in Karur, Tiruppur, Coimbatore and Erode. It therefore cannot establish the extent of domestic injury.
Existing Measures Target Evasion, Quality and Unfair Trade
The Government identified three existing responses:
Customs enforcement: CBIC monitors under-invoicing, mis-declaration, false country-of-origin claims and third-country routing used to evade duties.
Investigations: The Directorate of Revenue Intelligence uses intelligence and data analysis, with violations potentially leading to seizure, duty recovery or prosecution.
Quality and trade remedies: Quality Control Orders prescribe mandatory standards, while the Directorate General of Trade Remedies can investigate and recommend anti-dumping or countervailing duties.
The reply does not announce any new product-specific duty or investigation.
What Is Dumping?
Dumping occurs when goods are exported below their comparable normal value and cause material injury to domestic producers. Rising or inexpensive imports alone do not establish dumping; pricing, injury and causation must be demonstrated through an investigation.
Policy Relevance
Import growth is highly concentrated: Machinery and electrical equipment account for most of the reported increase.
The composition of imports matters: Capital goods and components can strengthen Indian production even as some finished imports pressure domestic manufacturers.
Supply-chain exposure requires monitoring: High dependence on one country can create vulnerabilities in strategic manufacturing sectors.
MSME impact needs product-level evidence: Import values should be combined with data on volumes, prices, orders, employment and capacity utilisation.
Trade remedies should remain targeted: Anti-dumping action is appropriate where unfair pricing and injury are established, not simply where imports have increased.
Relevant Question for Policy Stakeholders: Which imports from China are essential to Indian manufacturing, and where should domestic capacity or alternative sourcing be prioritised to reduce strategic dependence?
Follow the Full Parliamentary Reply Here: Lok Sabha Unstarred Question No. 3694, “Imports and Dumping”