According to the most recent data from the Department of Commerce, India’s imports from China decreased by 5.42 percent in November 2022 compared to the previous month.
The data indicates that India’s imports from the neighbouring nation decreased to $7.65 billion in November 2022 from $8.08 billion in November 2021. Imports of personal computers (laptops, palmtops, etc.), urea, and diammonium phosphate are declining significantly.
This is the second straight year in which imports from the neighbouring countries have decreased during the current fiscal year. In October 2022, India’s imports from China decreased by 9.73 percent, from $8.70 billion in October 2021 to $7.85 billion.
The fall in imports from China over the past two months contrasts with the rise in India’s total imports during the same time period. In November 2022, India’s overall imports climbed by 9.80 percent, from $53.02 billion in November 2021 to $58.23 billion. In October 2022, India’s overall imports increased by 10.02 percent, from $53.64 billion the previous year to $59.01 billion.
Despite a decline in two consecutive months, India’s imports from China in the first eight months of the fiscal year 2022-23 are 14.78 percent higher ($67.92 billion from April to November 2022) than they were in the same period of the previous fiscal year ($59.17 billion).
The drop in imports from China coincides with an increase in Covid-19 cases and the implementation of stringent measures to contain the spread of the virus in China over the past few months.
During the current fiscal year, monthly imports from the neighbouring country have reached a record high. Consequently, the reduction is large. India’s monthly imports from China surpassed $10 billion in July 2022.
In the months following the June 2020 conflict in Galwan, in which 20 Indian soldiers were killed, India’s imports from the neighbouring country reached a record high.