China Turns Key Export Market For India Amid Trump Tariff Woes - What Is Driving The Surge In Shipments?

(MENAFN- Live Mint) China is gradually emerging as an increasingly important export destination for India, signalling a potential structural shift in the bilateral trade relationship between the world's two most populous economies.

Indian shipments to China rose sharply by 33% to $12.22 billion during the April-November period of the current financial year, according to commerce ministry data cited by news agency PTI.

This surge in exports comes at a time when India's trade relations with the United States turned frosty, particularly after President Donald Trump imposed hefty tariffs of 50% on Indian goods.

Confirming this shift, an exporter told PTI that the Indian industry has been exploring opportunities in different markets as high tariffs in the US are making it difficult for them to ship goods at competitive rates in America.

What is driving this export surge?

The data showed that the notable rise in exports was fuelled by higher shipments of key products such as oil meals, marine products, telecom instruments and spices, reflecting stronger demand across a diverse set of Indian goods.

Between April and November 2024-25, India exported goods worth $9.2 billion. It was $9.89 billion in the same period in 2022-23, and $10.28 billion in 2023-24, according to the data cited by PTI.

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The sharp jump to $12.22 billion in 2025-26 not only reverses the decline recorded last year but also marks the highest level of exports to China in the past four years, as per the commerce ministry data.

In the electronics segment, the main items which registered growth during the first eight months included populated printed circuit boards, whose exports rose from $23.9 million to $922.4 million. Other items that contributed to the growth includes flat panel display modules, and other electrical apparatus for telephony.

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Meanwhile, the main agricultural and marine products exported to China include dried chillies, black tiger shrimp, green gram, Vannamei shrimp, and oil-cake residues.

Similarly, aluminium and refined copper billets also contributed notably to export growth.

“This spread across electronic goods, agriculture and base metals, indicates that the export surge is not narrowly concentrated but reflects a broader structural expansion of India's exports to China,” an official said.

India's trade deficit narrows

India's trade defici narrowed sharply in November as imports fell from the previous month's elevated levels, according to commerce ministry data released earlier.

Driven by rising shipments to countries such as the US, the UAE and China, the gap between imports and exports narrowed to $24.53 billion in November, a sharp improvement from $41.68 billion in October, Mint reported earlier.

The narrowing of the trade deficit was also supported by India posting its highest merchandise exports for the month of November in at least a decade, the news report stated.

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