India’s exports to China climbed sharply in December, reflecting improving relations between the two Asian powers and growing pressure from restrictive U.S. trade measures.
Commerce Ministry data released this week showed shipments to China rose 67.35% compared with the same month a year earlier, reaching $2.04 billion. The increase was driven largely by stronger sales of electronics, marine products and agricultural goods.
Trade flows in the opposite direction also expanded, with imports from China rising 20% year-on-year to $11.7 billion. China is now India’s largest goods trading partner, with total trade valued at $110.20 billion between April and December 2025, overtaking the United States, which recorded $105.31 billion over the same period.
The export surge comes as Indian shipments to the US face headwinds from steep tariffs. Exports to the American market fell 1.8% in December to $6.8 billion after Washington imposed a 50% tariff in August, including a punitive component linked to India’s purchases of Russian oil.
At the same time, political and economic ties between New Delhi and Beijing have steadily improved following a deadly border clash in 2020. Prime Minister Narendra Modi and Chinese President Xi Jinping met on the sidelines of the Shanghai Cooperation Organization summit in September 2025, where they agreed to deepen cooperation.
Since then, India has signalled plans to ease restrictions on Chinese firms bidding for government contracts, while direct flights between the two countries resumed in October after a five-year suspension. China also relaxed visa rules for Indian nationals in December.
India continues to negotiate with the US in search of a trade agreement, though progress has been slow amid repeated warnings from President Donald Trump of further tariff hikes. Washington has also threatened broader trade penalties against countries doing business with Russia and Iran, both key partners for India.
