India’s Exports to China Surge 22% Amid Changing Trade Dynamics

India’s exports to China increased by 22% in the first half of FY26, reaching $8.41 billion, driven by products like telephone set components, shrimp, and aluminium. This growth reflects India’s adaptability amid US-imposed tariffs and highlights diversification into markets like China, including new products such as OLED display modules. Experts view this trend as a sign of India’s export resilience, calling for further market expansion and stronger trade partnerships globally.

India has witnessed a notable 22% increase in exports to China during the first half (H1) of the 2025-26 fiscal year compared to the same period in the previous year, according to government data. This growth, fueled by products such as telephone set components, frozen shrimp, aluminium, and capsicum, highlights the country’s adaptability in navigating shifting global trade scenarios, particularly in the wake of US-imposed tariffs on Indian goods.

Diversified Trade Amid US Tariffs

The imposition of a steep 50% tariff by the United States on some Indian exports, including shrimp and aluminium, had initially disrupted trade flows. However, Indian exporters have successfully redirected these products to alternative markets, with China emerging as a significant buyer. Notably, exports of flat panel display modules featuring organic light-emitting diodes (OLEDs) and dried beans—items that were previously less prominent—have also gained traction in the Chinese market.

During the April-September 2025 period, India’s exports to China reached $8.41 billion, up from $6.90 billion during the same timeframe in 2024. The growth has been particularly striking since the US tariffs came into effect in August, with exports to China in September alone surging 34%, from $1.09 billion in September 2024 to $1.47 billion in September 2025.

Key Drivers of Export Growth

The data reveals significant increases across various product categories. Exports of light oils and petroleum-based products, for instance, more than doubled—rising by 116% from $686.11 million in H1 FY25 to $1.48 billion in H1 FY26. Similarly, telephone set components saw an extraordinary 162% growth, climbing from $178.42 million to $467.65 million during the same period.

Frozen shrimp and prawn exports to China grew by 25%, reaching $467.51 million in the first half of 2025-26 from $373.03 million in the previous year. Aluminium exports also saw a 59% jump, standing at $191.93 million, while sulphur shipments skyrocketed by over 175% to $116.80 million. Additionally, new product categories, such as OLED flat panel display modules, made a significant impact, with exports in this category rising from zero in FY25 to $246.26 million in FY26.

Expert Insights on Export Resilience

Ajay Sahai, Director General and CEO of the Federation of Indian Export Organisations (FIEO), described the 22% rise in exports to China as a testament to the agility and competitiveness of Indian exporters. He emphasized the strong performance in value-added sectors like shrimp, aluminium, and telephone components, which reflects India’s increasing integration into Asian production networks and its ability to adapt to evolving trade dynamics.

“This growth demonstrates diversification beyond traditional markets like the United States, but it’s premature to regard this as a definitive structural shift. Sustained diversification will require greater penetration into emerging markets across Asia, Africa, and Latin America, alongside the consolidation of high-value trade with the US and EU,” Sahai noted. He added that the trend underscores India’s growing export resilience and strategic adaptability.

Broadening Horizons for Indian Exports

While the growth in exports to China is encouraging, experts caution against over-reliance on a single market. To maintain momentum, India must deepen its presence in diverse regions while continuing to strengthen its trade relationships with established partners. The current trend, however, signals a promising shift towards greater flexibility and resilience in India’s export landscape.

As global trade dynamics continue to evolve, India’s ability to adapt and thrive, as seen through its recent performance in the Chinese market, highlights the potential for sustained growth and diversification in the years to come.