New Delhi, Feb. 21 -- India is becoming increasingly reliant on upstream imports from China for goods that are later exported to key markets like the United States and Europe, according to a recent study by McKinsey & Company on shifting global trade patterns.

This growing dependence highlights an evolving trade dynamic that could have long-term implications for India's export-driven sectors.

Between 2017 and 2023, India's imports from China grew at an average rate of 6 per cent annually, driven primarily by chemicals, including pharmaceuticals, and machinery.

These sectors form the backbone of India's manufacturing and export industries, making the country more vulnerable to supply chain disruptions and pricing fluctuations originatin...