India's EV boom fuels surge in Chinese battery imports, widening trade gap

India's push for electric vehicles has triggered a rapid increase in Chinese battery imports, which climbed to $2.9 billion in the April-August period, becoming the sixth-largest import from China this year. The growth pushed battery imports ahead of electronic instruments, electric machinery, plastics and chemicals. Imports of two- and three-wheelers rose to $107 million and car imports jumped 2.6-fold to $226 million, driven largely by BYD.

Telecom equipment and electronic components saw more than 40% growth, contributing to a trade deficit that widened to roughly $56 billion. Finance Minister Nirmala Sitharaman and Commerce Minister Piyush Goyal have expressed concern and urged a "fair deal" with China. Experts warn that without domestic capacity building, India's industries remain vulnerable to Chinese supply dominance.