No it is not, but Trade Deficit is a Leverage over us. This is what I meant.
For eg, Raw materials for Indian drug makers worth $3.5 billion are being sourced from China on an average annually.
Almost 70% of Active Pharmaceutical Ingredients (API) comes from China. Dependence on China for such a crucial component is not prudent for India’s national security, hence there is a need to diversify its sourcing and develop domestic capacity.
The gains far outweigh the purported deficit. Its like Chinese citizens whining about iron ore imports from India and a few other nations.
India’s pharmaceutical exports grew 18.7% to $24.44 billion in the financial year ended March 31, spurred by strong demand for the country’s generic drugs.
Pharmexcil says best performance of $24.4 bn came amid global contraction
www.thehindu.com
What about domestic consumption?
If we import $1 billion worth of products, it obviously gets utilized in a gazillion ways. Indian suppliers are unreliable, quality is a huge question mark.
Lets take bags, satchels, backpacks and executive backpacks for example. Raw material including buttons, thread and zippers are imported from China. They maintain their quality and meet time commitments. Not sure how good/bad the situation has been post covid but pre-covid the Chinese were almost indispensable. Let's say a large manufacturer who makes quality backpacks imports materials worth Rs. 100 and sells it for Rs. 400 to a large corporate supplier. There is value addition, it creates jobs and brings innovation.
We cannot discount the fact that along with Chinese export growth, we are also scaling up the manufacturing/production ladder slowly but surely.
Bet most of Armasen's raw inputs are imported from China but look at the end product.