India’s exports to China have shown a sharp recovery in 2025-26, rising nearly 20% in the first four months of the fiscal year to $5.76 billion, compared with $4.80 billion in the same period last year. This rebound comes after a contraction of 14.5% in 2024-25, when exports dropped to $14.25 billion.
Monthly trade data reflects a consistent upward trend. Exports grew 12.9% in April ($1.4 billion), 24% in May ($1.63 billion), 17% in June ($1.38 billion), and 27% in July ($1.35 billion). This turnaround contrasts sharply with 2024-25, when exports contracted in 11 out of 12 months.
The growth is being driven by strong demand from China across multiple sectors. Exports of petroleum products nearly doubled to $883 million, while electronics jumped 202% to $521 million. Agricultural goods showed extraordinary gains — oil meals (up 2656%), rice (up 1383%), and oil seeds (up 1792%). Traditional exports such as chemicals, spices, tea, and gems & jewellery also saw healthy increases.
Recent bilateral talks have further boosted optimism, with both countries agreeing to reopen border trade through Lipulekh, Shipki La, and Nathu La passes, and to take steps to facilitate trade and investment flows. Analysts say this momentum could help India diversify its export markets and gradually narrow its trade deficit with China, which stood at $99.2 billion in 2024-25.