India's Exports to China Witness Significant 37% Growth in Nine-Month Period
India's trade relationship with China has shown a notable upward trend, with exports surging by 37% to reach $14.2 billion during the period from April to December. This substantial increase was highlighted in official data presented to the Rajya Sabha on Friday by the government. The momentum was particularly strong in December 2025, where export shipments experienced a remarkable 67% jump, exceeding $2 billion for that month alone.
Import Figures and Trade Dynamics Revealed
According to the latest statistics from the commerce department, imports from China during the first nine months of the fiscal year also saw a rise, increasing by 13.5% to nearly $96 billion. In Parliament, Jitin Prasada, the junior minister for commerce and industry, provided detailed insights into the composition of these imports. He emphasized that the majority of goods imported from China consist of capital goods, intermediate goods, and raw materials, which are crucial for various industrial processes.
Minister Prasada elaborated on the import trends, stating, "In 2024-25, a decline in imports from China was observed across several sectors compared to the previous year." He specifically pointed out sectors such as fertilisers, which saw a 61.4% reduction, chemicals with a 19.7% decrease, iron and steel down by 10.3%, and man-made yarn experiencing a 9.5% drop in imports from China during that financial year.
Key Sectors Driving Import Demand
The minister further explained that items like active pharmaceutical ingredients, auto components, electronic parts and assemblies, and mobile phone parts are imported from China and subsequently utilized in the manufacturing of finished products within India. He attributed this import pattern to the growing demands of rapidly expanding sectors in the country, including electronics, pharmaceuticals, telecommunications, and power.
"These goods are imported for meeting the demand of fast expanding sectors like electronics, pharma, telecom and power in India," Prasada noted. He also connected the rise in imports of electronic components, computer hardware and peripherals, and telephone components to India's ongoing transformation into a digitally empowered society and a knowledge-based economy.
Analysis of Trade Balance and Future Implications
In response to inquiries regarding India's trade balance with China, the minister's statements underscore a complex trade dynamic. While exports have shown robust growth, imports remain substantial, driven by essential inputs for key industries. This scenario highlights India's reliance on Chinese imports for critical components, even as efforts to boost domestic production and reduce dependency continue.
The data presented indicates a strategic shift in trade patterns, with exports gaining momentum and imports being carefully managed to support industrial growth. As India advances its digital and economic initiatives, the trade relationship with China is likely to evolve, balancing between import needs for development and export opportunities for economic expansion.
