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India's Exports to China Soar 40%, Driven by AI Demand & Electronics
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Firstpost•22-09-2026, 10:26
India's Exports to China Soar 40%, Driven by AI Demand & Electronics
- •India's exports to China surged by nearly 40% in the first five months of the financial year, primarily fueled by a significant increase in electronics shipments.
- •Electronics exports to China tripled to $3.18 billion in the last fiscal year, with demand boosted by the global expansion of AI and data centers.
- •Beyond electronics, engineering exports to China also rose by approximately 21% in April-August, including machinery, auto components, and hand tools.
- •Despite the growth, China remains a relatively small market for Indian exports, accounting for only 4.4% of India's total exports.
- •The trade deficit with China persists, as India's imports from China ($131.6 billion) far outweigh its exports, indicating a change in direction but not yet a reversal of the imbalance.
Key Questions Answered
India's overall exports to China rose nearly 40 per cent during the first five months of the financial year.
The exported shipments included printed circuit board assemblies, smartphones, display modules, and telecom equipment.
India imported $131.6 billion worth of Chinese goods in the year ended March, making import values many times higher than exports, which leaves the bilateral trade deficit largely unchanged.
