India is keeping a close eye on rising imports from Hong Kong after it emerged as the country's sixth largest import partner in FY20, a steep rise from number 13 in FY18. A government official said this sudden jump is under scanner as China is seen routing exports via Hong Kong.
India’s imports from Hong Kong were $17 billion in the previous fiscal, with electronics, telecom equipment and computer hardware being almost $8 billion of the total.
This is a sharp rise from $10.67 billion imports in 2017-18 and a worrying trend of China changing its export routes even as India seeks to reduce its import dependence on China. Trade balance, which turned deficit with Hong Kong last year, has widened in FY20. While India’s trade deficit with China has been narrowing for the last two years, the trade gap with Hong Kong was $6 billion in 2019-20 compared to a $4 billion surplus in FY18, official data showed. “There have been import surges from many Asian countries including Hong Kong. This is under scrutiny,” said an official.