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a country like india faces all kinds of threats and challenges some are visible like the hall of sunnies, but many others are covert they hide in plain sight until they become too big to ignore or overcome like india's dependence on china for goods despite tensions at the border india is importing chinese goods in increasing numbers look at the trade deficit first, it has grown dramatically in the last five years and crossed three hundred and eighty seven billion dollars the biggest chunk of imports is industrial goods stuff like your telecom gear machinery and electronics 15 years ago china share was 21 percent meaning 21 percent of industrial goods imported by india came from china twenty one percent fifteen years ago today, it's around thirty percent so the dependence has increased so has the pace of chinese imports compared to other countries india, india's imports from china arising two point three times faster so not only are we purchasing more from china the volume of imports is also expanding and that too rather quickly so india remains addicted to chinese imports and like any addiction this one is proving hard to break there are a couple of reasons for that first of all the lack of alternatives that is a big reason take a look at this list these are india's greeting imports where china has the biggest share the first is electronics more than 43 percent of them 43 percent of electronics chronics come from china same with machinery almost 40 percent of the machines used in india come from china which includes sophisticated technology like integrated circuits in 2022 india bought circuits from china worth over four billion dollars why this dependence because we lack the know how to make sophisticated equipment and parts china on the other hand has a large number of such factories also a large pool of patents to access from chinese factories contribute over 28 percent of the world's manufacturing output so in 2022 they received almost 800 thousand patents china offers both size and scale to importers it can produce a large number of goods and at a high speed, which makes chinese supplies harder to replace that's one factor one problem the second factor is cost let's take the example of apis that's active pharmaceutical ingredients api they're the raw materials used to make drugs your medicines india relies heavily on china to supply these apis they come from china why this dependence because china's api supplies are cheap take parasitimal for instance one of the most commonly used medicines it is used to treat fever what is the price of parasitimal in india around four dollars per kilo and how much is china selling it for around three point three to three point five dollars for one kilo what makes the indian supply expensive raw material costs the cost of electricity and labor and logistics all of these add to the price and compared to india, china is far more cost on all these three fronts, but it's not all lumi this is beginning to change during the pandemic india tried to break china's monopoly on the api supply india introduced production linked incentives and the effort has seen some success earlier india imported eighty percent of its apis from china now that figure has come down to sixty eight percent, but there's still a long way to go if india wants to reduce its dependence on china it must build up its own manufacturing capacities and it must do so fast the border situation has left us little choice a few days ago beijing offered this piece of advice to new delhi。

