India imported auto components worth $7,174.73 million during the financial year 2024-25 (FY25), of which $1,912.82 million came from China, the Parliament was informed on Tuesday.

This means China accounted for 26.66 per cent of India’s total auto component imports, Minister of State for Commerce and Industry Jitin Prasada said in a written reply to a question in the Lok Sabha.

India’s total imports from China stood at $98.50 billion in 2022-23 and $101.74 billion in 2023-24 -- representing 13.76 per cent and 15 per cent of overall imports, respectively.

Electronics, telecom instruments, computer hardware, industrial machinery, organic chemicals, and bulk drugs are among the top categories of imports from China, with some showing dependency levels as high as 74 per cent, according to data tabled in the Lok Sabha.

The government acknowledged that much of India’s imports from China are raw materials, intermediate goods and capital goods, which are used for making finished products in fast-expanding sectors like electronics, pharma, telecom, and renewable energy.

To reduce strategic reliance on Chinese-origin products, several policy measures have been launched.

These include the Production Linked Incentive (PLI) schemes covering 14 key sectors such as electronics, IT hardware, pharmaceuticals, bulk drugs, solar modules, and auto components, with a total outlay of Rs 1.97 lakh crore.

Additional steps like the Electronics Components Manufacturing Scheme (Rs 22,919 crore), PLI for bulk drugs (Rs 6,940 crore), solar PV module incentives (Rs 24,000 crore), and PLI for advanced automotive technologies (Rs 25,938 crore) are also in place to encourage domestic manufacturing.

The government further highlighted that initiatives like ‘Make in India’, PM Gati Shakti, National Logistics Policy, and Industrial Corridor projects are aimed at building competitive domestic supply chains.

Trade remedial actions through the Directorate General of Trade Remedies (DGTR) are also being used against unfair imports.

Officials pointed out that progress is visible in some sectors. India has turned into a net exporter of mobile phones and bulk drugs in recent years, supported by PLI schemes.

Exports of mobile phones, for instance, have risen from Rs 1,500 crore in 2014-15 to over Rs 2 lakh crore in 2024-25 -- making India the world’s second-largest mobile manufacturer.