India’s Exports to China Jump Nearly 40%, But Trade Gap Remains Huge
What Happened
India’s exports to China rose by nearly 40% during April-August 2026, driven by strong demand for electronics, engineering goods and AI-related components. Electronics exports to China increased more than 15% during the period, while engineering exports rose about 21%. The growth reflects India’s efforts to strengthen manufacturing and become a larger player in global supply chains.
Key Takeaways
The export surge is a positive sign for India’s manufacturing ambitions, particularly in electronics and engineering goods. However, while exports are growing faster, India continues to import much more from China than it exports, meaning the overall trade equation remains heavily tilted in Beijing’s favour.