Do India's new Western trade deals actually reduce its reliance on Chinese supply chains?
Even as India signs new trade agreements with the EU and moves toward a narrower deal with the US, data on value chains shows a significant and growing share of the foreign inputs embedded in India's manufacturing exports, including chemicals, machinery, and electronics, originates from the Asia-Pacific region, with China a major contributor. This suggests that new Western market access alone does not automatically reduce India's underlying dependency on Chinese-sourced components and materials.
Regional value-chain data shows a majority share of foreign value added in India's chemicals exports to the US and EU originates from the Asia-Pacific region.
Reducing reliance on Chinese-sourced inputs would require deliberate supply chain diversification separate from trade deal negotiations.