India-China Trade: Exports Surge 20% in First Quarter of FY26

India's exports of merchandise to China registered a remarkable 20% year-on-year increase in the initial four months of Financial Year (FY) 26 to $5.76 billion (around Rs 50,112 crore), official data show.

All four months in the period recorded higher exports outward than the corresponding period last year, reflecting a steady upward trend despite glitches in international trade.

Exports reached their highest point in May 2025 at $1.63 billion, an increase from $1.32 billion in May 2024, representing the best monthly performance in this period.

Shipments in April went up to $1.39 billion from last year's $1.25 billion, while June exports rose 17% year-on-year to $1.38 billion. July exports amounted to $1.35 billion, up from last year's $1.06 billion in the same month.

This expansion is a gradual rebalancing of trade dynamics between China and India. India has had a huge trade deficit with China historically, amounting to $99.2 billion in FY25.

Exports to China in the April–June quarter of FY26 were led by strong demand in energy, electronics, and agri-based products. Export of petroleum products almost doubled to $883 million, while electronic goods jumped over threefold to $521 million.

Exports of inorganic and organic chemicals increased 16.3% to $335.1 million, while exports of gems and jewellery registered a remarkable surge of 72.7%.

In the imports front, India's largest Chinese purchases remained pharmaceuticals, semiconductors, electronics, machinery, chemicals, plastics, and other industrial commodities.

The consistent month-on-month expansion against last year underscores India's improving trade performance with China and rising export competitiveness, even as volatility captures the ups and downs in global trade trends and seasonal buying patterns.

Chinese Foreign Minister Wang Yi and External Affairs Minister S. Jaishankar had lengthy bilateral discussions at New Delhi earlier this month.

The talks, which dealt with bilateral, regional, and international matters of common interest, were termed as "positive, constructive, and forward-looking" by India's Ministry of External Affairs.