India’s Exports To China Rise Nearly 40% In April-August, Electronics Drive Growth

New Delhi, Sep 21 (KNN) India’s exports to China rose nearly 40 per cent in the April-August period, with electronics and engineering goods emerging as key drivers, even as the bilateral trade remains heavily skewed in China’s favour.

Industry executives said demand linked to the global expansion of artificial intelligence (AI) infrastructure and data centres is contributing to the increase in electronics shipments.

Electronics Exports Gain Momentum

India’s electronics exports to China more than tripled to USD 3.18 billion in 2025-26, driven by products including printed circuit board assemblies, smartphones, display modules and telecom equipment.

Electronics shipments continued to rise in the current fiscal, increasing more than 15 per cent during April-August from a year earlier, reported Bloomberg.

Rajoo Goel, Secretary General, Electronic Industries Association of India, said demand for high-end equipment linked to AI products and expanding data-centre capacity was encouraging suppliers to increase electronics exports from India to China.

Pankaj Mohindroo, Chairman, Indian Cellular and Electronics Association, said the growth indicated that Indian manufacturing was gaining greater credibility in global value chains.

Engineering Exports Also Rise

The growth has extended beyond electronics. Engineering exports to China increased around 21 per cent during April-August, according to exporters, with machinery and parts, auto components and hand tools among the products driving shipments.

Industry representatives said the focus now should be on sustaining the growth across components, sub-assemblies and finished products while strengthening domestic design and component capabilities.

Trade Deficit Remains Large

Despite the recent gains, China remains a relatively small destination for Indian exports, accounting for 4.4 per cent of total exports in the year ended March, compared with just over 3 per cent a year earlier.

India imported USD 131.6 billion worth of Chinese goods during the same period, accounting for nearly 17 per cent of its total imports and far exceeding its exports to China.

Industry executives also cautioned that differences in product classification make it difficult to determine the precise drivers of the increase. 

Chinese customs data, for instance, does not show a comparable rise in printed circuit board imports from India, with much of the increase appearing under smartphones and other telecom products.

The latest export gains come as India seeks to expand its manufacturing base and strengthen its role in global supply chains, while New Delhi and Beijing work to improve bilateral economic ties.

(KNN Bureau)