India's merchandise exports to China witnessed a remarkable surge in December, jumping 67.35% compared to the same month last year. Official data from the Commerce Ministry shows exports reached $2.04 billion. This impressive growth comes primarily from increased shipments of electronics, marine items, and agricultural products.
Key Export Drivers
The sharp rise in exports was led by several key categories. Oil meals, marine products, telecom instruments, and spices showed particularly strong performance. Within the electronics segment, populated printed circuit boards, flat panel display modules, and other electrical apparatus for telephony registered substantial growth.
Agricultural and Marine Contributions
Agricultural and marine exports played a significant role in the overall increase. Products like dried chillies, black tiger shrimp, green gram, Vannamei shrimp, and oil-cake residues contributed to the positive numbers. Additionally, shipments of aluminium and refined copper billets made notable contributions to the export growth.
Import Figures and Trade Balance
While exports surged, imports from China also increased during December. The data reveals imports grew by 20% to reach $11.7 billion. Looking at the broader picture from April to December of the current fiscal year, India's exports to China rose 36.7% to $14.24 billion. Imports during the same nine-month period climbed 13.46% to $95.95 billion.
This trade dynamic resulted in a widening trade deficit with China. The gap reached $81.71 billion during the April-December period. Commerce Secretary Rajesh Agrawal responded positively to the export performance, describing it as encouraging. He stated, "It is a welcome growth."
China's Position in India's Trade
China continues to hold its position as India's second-largest trading partner, following the United States. Bilateral trade flows between the two nations continue to expand despite the persistent trade imbalance. The latest figures highlight both the opportunities and challenges in the economic relationship between India and China.
