Archive · 20 Aug 2025
India Faces Trade Challenges with China
India buys much more from China than it sells, creating a $100 billion trade gap.
China is now planning to relax the rules on selling certain goods like minerals to India.
While India is working to make things at home and rely less on China, focusing on making goods like solar panels and batteries, its exports to China are still very low.
India is also trying to create its own rare earth magnets.
The government is also spending billions on supporting Indian companies to make products and bring down the trade deficit.
India has a $100 billion trade deficit with China, according to GTRI.
China is easing restrictions on certain exports to India, including rare-earth minerals.
India's exports to China have declined, comprising only 11.2% of bilateral trade.
The Production Linked Incentive (PLI) scheme aims to boost domestic cell production.
India is working to reduce its dependence on Chinese imports through various initiatives.
- Who
- India, China, GTRI, and various companies involved in manufacturing.
- What
- India has a large trade deficit with China and is working to decrease its reliance on Chinese imports.
- When
- Ongoing; China is easing restrictions in the present time.
- Where
- India and China.
- Why
- To reduce trade deficit and lessen reliance on China.
- Trade Deficit
- $100 billion (India with China)
- Chinese Action
- Easing export restrictions on key items
- Key Imports from China
- Telecom, electronics, machinery, chemicals
- India's Export Share
- 11.2% of bilateral trade
- Scheme
- Production Linked Incentive (PLI)
- PLI Investment
- Rs 18,100 crore
Sources
China Eases Rare Earth Magnet Supply: Relief Or Lesson Learned For Indian EV Makers?
China's curbs on rare earth magnets hits supply chain of Indian EV manufacturers, says govt
China's export curbs on rare earth magnets impacting EV manufacturers
MP CM says India’s dependency on China for Rare Earth Elements to end
China assures India of sorting concerns on rare earth, fertilizer supplies
Getting back on track
