PLI Scheme Paying Off! India's Imports From China Shrinking | Here's The Sector Most Benefited

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In the fiscal year 2022-2023, India witnessed a decline in its import of electronics products (HS85) from China. The import value decreased from $30.3 billion in FY22 to $27.6 billion in FY23, reflecting a significant slide. Notably, this decline was particularly notable in the electronics sector, where the production-linked incentive (PLI) scheme was operational. Several specific electronics items experienced significant reductions in imports during this period. For instance, imports of solar cells, parts, and related components saw a substantial decline of 70.9 per cent. Similarly, there was a 23.1 per cent decrease in imports of laptops and personal computers, and a 4.1 per cent decline in mobile phone imports.

This decline in imports highlights the effectiveness of the PLI scheme, which aims to promote domestic manufacturing and reduce dependence on imports. The scheme provides incentives to manufacturers, encouraging them to establish and expand production facilities within India. As a result, the country has witnessed a positive impact on its electronics manufacturing sector, leading to decreased reliance on imports from China. This trend aligns with India's broader objective of enhancing self-sufficiency in critical sectors and bolstering the domestic economy.

To establish India as a prominent global center for Electronics System Design and Manufacturing (ESDM) and to advance the goals outlined in the National Policy on Electronics (NPE) 2019, four schemes were introduced. These schemes were notified in April 2020 and March 2021, and they aim to propel the growth of the electronics manufacturing industry in the country.

The first scheme is the Production Linked Incentive Scheme (PLI), which offers incentives to manufacturers to promote domestic production. The second scheme is the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), which focuses on fostering the manufacturing of electronic components and semiconductors within India. The third scheme, called the Modified Electronics Manufacturing Clusters Scheme (EMC 2.0), aims to develop electronic manufacturing clusters that provide a conducive environment for manufacturing activities.

Additionally, a fourth scheme, the Production Linked Incentive Scheme (PLI) for IT Hardware, was introduced in March 2021. This scheme aims to encourage the manufacturing of IT hardware products, such as laptops, tablets, and servers, in India.

PLI Scheme Paying Off! India's Imports From China Shrinking | Here's The Sector Most Benefited

In the fiscal year 2022-2023, India witnessed a decline in its import of electronics products (HS85) from China. The import value decreased from $30.3 billion in FY22 to $27.6 billion in FY23, reflecting a significant slide. For instance, imports of solar cells, parts, and related components saw...

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In 2022 China was under strict covid lockdown, many factories and business were shut down.

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FY23: India’s Imports From China Up 4.16%, Exports Down 28%, Trade Deficit at $83.2 Billion​

Due to plummeting exports, India's bilateral trade with China showed a minor dip of about 1.5% to $113.83 billion in 2022-23 as against $115.42 billion in 2021-22.

17/APR/2023
New Delhi: According to provisional data from the commerce ministry, India’s exports to China dipped by about 28% to $15.32 billion in 2022-23, while imports rose by 4.16% to $98.51 billion in the last fiscal. The trade gap widened to a record high of $83.2 billion in FY23 as against $72.91 billion in 2021-22.

FY23: India’s Imports From China Up 4.16%, Exports Down 28%, Trade Deficit at $83.2 Billion

Due to plummeting exports, India's bilateral trade with China showed a minor dip of about 1.5% to $113.83 billion in 2022-23 as against $115.42 billion in 2021-22.

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