India’s exports to China are rising at a stellar pace, with Commerce Ministry data showing a 64% increase in July, significantly outpacing the 34% growth in imports from the country. During the first four months of FY27 (April-July), exports to China surged 36% to $7.7 billion, while imports rose 30% to $52.7 billion. If the current pace is sustained, India’s full-year exports to China could easily cross the previous peak of $21.3 billion recorded in FY21.
The increase has been driven by, among other things, value-added products such as mobile-phone parts and telecom equipment.
“We are now consistently doing well in percentage terms in China. I think electronic exports to China are increasing, in addition to some other exports,” Commerce Secretary Rajesh Agarwal said when asked about the rise in exports to China.
India’s merchandise exports to China rose to $19.7 billion in FY26 from $14.3 billion in FY25. However, the trade deficit widened to $111 billion from $99 billion. In the first four months of FY27, the deficit has already touched $45 billion, compared with $35 billion in the corresponding period last year.
According to Ajay Sahai, director general and CEO of the Federation of Indian Export Organisations (FIEO), India’s exports to China are witnessing a notable revival, driven by stronger Chinese demand for industrial inputs and commodities, along with improved performance in some value-added sectors.
“More encouragingly, electronics, machinery and components are also beginning to contribute, indicating some gradual broadening of India’s traditional export basket to China,” Sahai said.
India traditionally exports petroleum products, including naphtha, iron ore and other minerals, edible oils and marine products to China. However, over the last one-and-a-half years, exports of mobile-phone parts and telecom equipment have surged.
Petroleum products, including naphtha, were the largest export category during April-June 2026, at $653.3 million. Telecom equipment and mobile-phone parts, including printed circuit boards, followed at $539.7 million. Other major exports included iron ore at $431.2 million, shrimps and other marine products at $226.5 million.
However, GTRI founder Ajay Srivastava advised caution against premature celebration.
“Telecom and mobile-phone component exports may be linked to intra-company transactions and may not recur at the same level every quarter,” Srivastava said.
According to him, India’s export basket to China remains concentrated in petroleum products, minerals, basic intermediates and agricultural commodities. “Many of these products have limited value addition and are vulnerable to sharp price and demand fluctuations. India has yet to achieve a comparable breakthrough in higher-value sectors such as machinery, automobiles, chemicals, pharmaceuticals and sophisticated manufactured goods,” he said.
Sahai said India needs to build on the current momentum by securing greater Chinese market access for pharmaceuticals, engineering goods, electronics and components, auto parts, speciality chemicals, processed foods and other value-added products.
However, experts said Chinese product-approval requirements, procurement practices and other non-tariff barriers continue to restrict market access for several competitive Indian products.
