Why in news
- Data for 2025–26 reveals that China accounts for at least 80% of India's total imports across 71 distinct tariff lines.
- China maintained a dominant 48.9% share of India's total semiconductor imports during the same period.
Key terms
Tariff Line
A specific product classification code under the Harmonized System (HS) used by customs to levy import duties.
Supply Chain Resilience
The capacity of a national economy to absorb supply shocks and quickly diversify sourcing channels.
Extent of import concentration
- High structural concentration exists in critical technology components, active pharmaceutical ingredients (APIs), and electronic inputs.
- Nearly half (48.9%) of all imported semiconductor units and sub-assemblies originate from Chinese suppliers.
- Over 80% dependence across 71 tariff lines highlights vulnerability to single-source supply chain disruptions.
Policy implications and counter-measures
- Underscores the operational necessity of the India Semiconductor Mission (ISM) and domestic Production Linked Incentive (PLI) schemes.
- Requires strategic diversification through trade agreements and critical mineral partnerships to mitigate economic security risks.
Prelims facts
- Semiconductor imports into India remain heavily concentrated, with China accounting for nearly half of total imports.
Mains discussion
- Examine the trade security risks posed by heavy import reliance on single foreign suppliers for critical industrial inputs.
Source: Hindu Business Line
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
-
2018 · Q64 · UPPGS
Which of the following elements is a semiconductor?