Prime Minister Narendra Modi and China's President Xi Jinping shake hands during the welcome ceremony of the Shanghai Cooperation Organization (SCO) summit in Tianjin. File image/AFP
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Firstpost22-01-2026, 19:26

India's Exports to China Soar 37% Amid Warming Ties, US Tariffs

  • India's exports to China surged 37% to $14.25 billion in April-December 2025, driven by electronics, marine products, and petrochemicals.
  • The growth is attributed to thawing bilateral ties, shifting global supply chains, and India's efforts to counter steep US tariffs.
  • US President Trump imposed 50% tariffs on Indian goods, including an additional 25% for Russian oil purchases, forcing India to seek alternative markets.
  • Despite the export surge, India's trade deficit with China widened to $81.7 billion, raising concerns among economists about long-term imbalance.
  • Experts caution that the export gains are narrow, commodity-specific, and reactive to Chinese demand, not a structural realignment.

Why It Matters: India's exports to China jumped significantly, influenced by US tariffs and global supply chain shifts, but trade imbalance persists.

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