Indian exports to China surge
The growth in December comes amid sharp US tariffs and warming ties between New Delhi and Beijing
India’s exports to China surged in December amid an improvement in bilateral ties between the Asian neighbors, official data showed.
Figures released by the Commerce Ministry this week showed that shipments to China rose 67.35% year-on-year in December.
Exports to China increased to $2.04 billion, driven by electronics, marine, and agricultural products, according to reports.
Imports from China, India’s second-largest trading partner after the US, also increased 20% to $11.7 billion during the month.
Beijing has emerged as India’s largest goods trading partner, recording transactions worth $110.20 billion between April and December 2025, replacing the US, which registered $105.31 billion.
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The surge in exports to China comes amid a 50% tariff imposed by the US. India’s exports to the US dropped 1.8% to $6.8 billion in December as the tariff weighed in, CNBC reported.
Ties between India and China have vastly improved after a border clash in 2020 that claimed the lives of soldiers on both sides.
Indian Prime Minister Narendra Modi met Chinese President Xi Jinping at the Shanghai Cooperation Organization summit in September 2025, where they agreed to enhance cooperation.
India is planning to lift restrictions on Chinese companies bidding for government contracts, introduced in 2020 after the border clash.
Direct flights between China and India officially resumed in October 2025 after five years, and Beijing relaxed visa rules for Indian nationals in December.
The US, India’s top export market, imposed a steep 50% tariff in August 2025, half of which was a punitive levy for New Delhi’s purchases of Russian oil. India maintains that its oil purchases are dictated by national interest.
India and the US have held several rounds of talks to reach a trade deal, which remains elusive amid repeated threats by President Donald Trump to increase tariffs.
Trump has also backed a bipartisan bill to impose additional tariff on Moscow’s trading partners.
The US has similarly threatened to impose a blanket 25% tariff on any nation that conducts business with Iran, escalating a pressure campaign to isolate the Islamic Republic amid ongoing unrest.
India is among Iran’s top trade partners.