India’s exports to China jump 22% in first half of FY2025-26 amid US tariff headwinds-By: R.Anil Kumar

• Strong shipments of shrimps, aluminium, petroleum products and telecom parts drive surge; experts say exporters are adapting through diversification

• The surge was led by higher exports of petroleum products, telephone parts, shrimps, aluminium and capsicum

• The increase follows US tariffs of 50% on Indian goods, which prompted exporters to redirect some trade flows

• Exports to China in September alone jumped 34% year-on-year to $1.47 billion, government data showed

• Items such as OLED display modules and dried beans have newly entered the Chinese market

Bengaluru. India’s exports to China rose by about 22% in the first half (April–September) of FY2025–26, reaching $8.41 billion, compared with $6.90 billion in the same period last year, according to official data. The surge, driven by stronger demand for select commodities, reflects a broader realignment in India’s trade flows following the imposition of high US tariffs on Indian goods.

Exports to China have climbed sharply since August, when the United States levied a 50% tariff on several Indian products. In September alone, outbound shipments to China grew 34% year-on-year, touching $1.47 billion compared with $1.09 billion in September 2024.

Government data showed that the rise in exports was led by light oils and petroleum-based products, which more than doubled to $1.48 billion in the first half of FY26 from $686 million a year earlier — a 116% increase. Exports of parts of telephone sets also surged 162%, climbing from $178 million to $467 million over the same period.

Similarly, frozen shrimps and prawns, one of India’s largest seafood exports, grew 25%, reaching $467.5 million from $373 million last year. Aluminium exports rose 59% to $192 million, while sulphur shipments jumped 175% to $117 million.

Several new product categories, previously negligible in India’s export basket to China, have emerged as significant contributors. Notably, flat panel display modules using organic light-emitting diode (OLED) technology surged from zero exports in H1 FY25 to $246 million in the first half of FY26.

According to Ajay Sahai, Director General and CEO of the Federation of Indian Export Organisations (FIEO), the sharp increase in exports to China demonstrates Indian exporters’ agility and competitiveness, particularly in value-added segments such as electronics, seafood, and metals.

“India’s 22% surge in exports to China in the first half of FY26 is an encouraging sign of exporters’ adaptability,” Sahai said. “It reflects both supply-chain realignment and India’s growing integration into Asian production networks.”

He added that while the shift indicates diversification beyond traditional markets like the United States, it is still too early to view it as structural. Sustained diversification, he said, would depend on deeper engagement in emerging markets across Asia, Africa and Latin America, while consolidating trade ties with the US and EU.

“The trend, however, clearly points to India’s expanding export resilience and adaptability,” Sahai said.