Business

India’s Exports To China Rise 20% In First Four Months Of FY26

India’s goods exports to China rose 20% year-on-year in the first four months of FY26, reaching $5.76 billion (₹50,112 crore), according to official data.

Each month recorded higher shipments than the same period last year. Exports peaked in May at $1.63 billion, compared with $1.32 billion in May 2024.

An official said, “The consistent month-on-month growth highlights India’s improved trade performance with China and growing export competitiveness, even as global trade conditions and seasonal demand fluctuations persist.”

Monthly Breakdown

April 2025: $1.39 billion, up from $1.25 billion a year earlier
May 2025: $1.63 billion, up from $1.32 billion in May 2024
June 2025: $1.38 billion, 17% higher year-on-year
July 2025: $1.35 billion, up from $1.06 billion in July 2024

This steady growth underscores India’s ability to sustain momentum despite global trade uncertainties.

The surge in exports signals a gradual rebalancing of trade between the two Asian economies, where India has long faced a large deficit. India’s trade deficit with China stood at $99.2 billion in FY25.

Sector-Wise Export Growth

India’s export growth to China in April–June 2025 was powered by strong performances across energy, electronics, and agriculture-based products:

Petroleum products: Nearly doubled to $883 million
Electronics goods: Tripled to $521 million, driven by strong industrial and consumer demand in China
Organic & inorganic chemicals: Rose 16.3% to $335.1 million
Gems & jewellery: Increased 72.7%

While exports surged, India continued to rely heavily on imports from China. New Delhi’s top imports included pharmaceuticals, electronics and semiconductors, machinery, industrial goods, chemicals, and plastics.

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Purnima Mishra