China Imports Drive India's Green Revolution: Govt Confirms Critical Minerals Essential for EV and Semiconductor Push

China Imports Drive India's Green Revolution: Govt Confirms Critical Minerals Essential for EV and Semiconductor Push​

The Indian government has affirmed that certain imports from China, including critical minerals and industrial inputs, are fundamental to bolstering the nation’s clean-energy transition. The Commerce Ministry clarified this stance in a written response to a Lok Sabha question, acknowledging the role of these goods despite ongoing concerns regarding low-cost Chinese products in domestic markets.

The ministry explicitly stated that India imports essential inputs such as lithium, cobalt, nickel, graphite, and rare earth elements. These materials are non-negotiable components for advancing clean-energy technologies, manufacturing electric vehicles (EVs), producing advanced electronics, and scaling up semiconductor production.

Critical Inputs Anchor Strategic Indian Sectors​

The reliance on Chinese intermediate goods extends beyond primary raw materials. The government noted that imports of capital equipment and specialized advanced technologies support robust domestic production. These inputs are vital for deeper integration into global value chains, particularly within strategic sectors like pharmaceuticals, fertilizers, electronics, and cutting-edge manufacturing.

This dependency highlights the complex intersection between national industrial strategy and immediate resource sourcing requirements. While promoting self-reliance remains a stated goal, the current supply chain necessitates specialized inputs from foreign markets.

Industrial Imports Show Rapid Growth Trends​

Data provided by the ministry indicates a significant upward trajectory in industrial imports from China over the past three years. Imports under engineering-related tariff chapters rose sharply, increasing from $53.83 billion in 2023-24 to $63.95 billion in 2024-25, and further climbing to $75.82 billion in 2025-26.

The engineering category recorded the fastest increase among the listed sectors, showing a near 41 percent rise across two years alone. Other categories also registered steady growth, with plastics imports rising from $5.67 billion in 2023-24 to $6.71 billion by 2025-26. Textile and toy imports also saw increases during the same period.

Regulatory Mechanisms Curb Unfair Trade Practices​

Addressing concerns over unfair import practices, the Commerce Ministry detailed the regulatory framework designed to monitor global trade flows. The Central Board of Indirect Taxes and Customs (CBIC) is responsible for monitoring cases involving under-invoicing, mis-declaration of goods, and incorrect country of origin labeling.

The Directorate of Revenue Intelligence (DRI) undertakes highly targeted investigations using data analytics and international cooperation. When violations are detected, enforcement actions can include the seizure of goods, recovery of duty, and prosecution under the Customs Act, 1962.

Quality Control and Anti-Dumping Oversight​

To prevent the influx of substandard products, the ministry pointed to the existence of mandatory certification and Quality Control Orders (QCOs). Furthermore, the Directorate General of Trade Remedies (DGTR) is actively tasked with investigating and imposing necessary anti-dumping duties or countervailing duties where unfair trade practices are identified.