China is steadily emerging as a key export destination for India, with shipments rising 33 per cent to $12.22 billion during April–November of the current fiscal, according to commerce ministry data.
The development assumes significance in light of Delhi facing punitive tariffs from the US, India's largest export partner
The figures point to a possible structural shift in the bilateral trade relationship between the two countries, reversing last year’s decline and marking the highest export level to China in the past four years.
India’s exports to China stood at $9.2 billion during April–November 2024–25. In comparison, shipments were valued at $9.89 billion in the corresponding period of 2022–23 and $10.28 billion in 2023–24. The sharp rise to $12.22 billion in 2025–26 reflects a significant turnaround, the data showed.
The growth was driven by a broad range of products, including oil meals, marine products, telecom instruments and spices. In the electronics segment, exports of populated printed circuit boards surged from $23.9 million to $922.4 million during the first eight months of the fiscal. Other electronic items showing growth included flat panel display modules and electrical apparatus used in telephony.
Agriculture and marine exports were led by dried chilies, black tiger shrimp, green gram, Vannamei shrimp and oil-cake residues. Exports of aluminium and refined copper billets also made a notable contribution to the overall increase.
“This spread across electronic goods, agriculture and base metals, indicates that the export surge is not narrowly concentrated but reflects a broader structural expansion of India's exports to China,” an official said.
An exporter said that Indian industry is exploring opportunities in different markets as high tariffs in the US are making it difficult for them to ship goods at competitive rates in America.
India plans to ease curbs on Chinese firms
India’s finance ministry is reportedly planning to scrap restrictions imposed in 2020 that barred Chinese companies from bidding for government contracts, sources told Reuters. The curbs, introduced after a deadly border clash, required Chinese firms to register with a government committee and obtain political and security clearances.
The restrictions effectively blocked Chinese companies from competing for contracts worth $700–750 billion. Officials are now working to remove the registration requirement, with the final decision expected from Prime Minister Narendra Modi’s office.
Previous restrictions led to delays and shortages
The 2020 restrictions had tangible effects. China’s state-owned CRRC, for example, was disqualified from bidding on a $216 million train-manufacturing contract. Other government departments reported project delays and shortages due to limited Chinese participation.
A high-level committee headed by former cabinet secretary Rajiv Gauba also recommended easing the curbs. After the restrictions, new projects awarded to Chinese bidders fell 27% in 2021 compared with the previous year, according to the Observer Research Foundation.
Shares of Indian companies such as Bharat Heavy Electricals and Larsen & Toubro fell following the Reuters report, reflecting concerns over increased competition from Chinese firms.
Improving ties amid global trade pressures
India-China commercial ties have improved recently. Prime Minister Modi visited China last year—the first visit in seven years—agreeing to foster deeper economic engagement. Following the visit, direct flights resumed, and visa approvals for Chinese professionals were expedited.
The move also comes in the context of high US tariffs on Indian goods, which have encouraged India to diversify its export markets. Analysts suggest that easing curbs on Chinese firms could strengthen India-China trade, even as New Delhi remains cautious with foreign investment restrictions.
Opposition criticism
The Congress party criticised the government’s reported plan to lift curbs, calling it “nothing short of a calibrated capitulation” to Chinese aggression. The party demanded that PM Modi explain the “sudden U-turns” on China policy during the forthcoming Budget session of Parliament.
