India’s imports of electronics, telecom, and electrical products soared to USD 89.8 billion in 2023-24 and over half of these imports are sourced from China and Hong Kong, economic think tank GTRI said in its report.

China dominates with a commanding 43.9 per cent share of India’s imports in electronics, telecom, and electrical sectors, the Global Trade Research Initiative (GTRI) said.

The data highlights a deep-seated dependency on these two countries that has seen a dramatic escalation over the years, it added.

It said that reducing this dependency is crucial, not merely to boost economic resilience but to safeguard India’s digital and technological sovereignty in a world that is becoming ever more interconnected.

“These sectors are integral to the daily lives of millions, enhancing communication, commerce, and information access. However, India’s heavy dependence on imports, especially from China, presents formidable challenges to the nation’s strategic autonomy and economic security,” the report said.

GTRI Founder Ajay Srivastava said that this profound reliance on Chinese imports exposes severe vulnerabilities within India’s supply chain and underscores the pressing necessity for strategic diversification of sources and enhancement of domestic production capabilities.

In the electronics segment, the report said that integrated circuits have experienced a significant import growth from USD 166.1 million during 2007-2010 to USD 4.2 billion in 2020-2022.

These circuits are critical for powering a wide range of electronic devices, from computers to smartphones, illustrating a deepening technological dependency on China, with their market share increasing from 19.2 per cent to 33.4 per cent.

Similarly, communication devices, including phones and other wireless devices, have also seen a significant increase in imports, rising to USD 3.691 billion with over half of the market now dominated by China.

“Diodes, transistors, and similar semiconductor devices have seen their imports skyrocket from USD 113.3 million to USD 2,334.8 million, with the Chinese market share jumping to 67.5 per cent, indicating a significant dependency on Chinese semiconductor technology,” it said.