India’s export landscape is showing robust growth, particularly in trade with China. Government data reveals that in the first half of the 2025-26 fiscal year, India’s exports to China saw a substantial increase of approximately 22% compared to the same period in FY25. This upward trend is largely attributed to strong performance in sectors such as telephone parts, shrimps, and aluminium.
This development is particularly noteworthy as some of these very items, like shrimps and aluminium, faced significant challenges in the US market due to imposed tariffs of up to 50%. The increased demand for these products in China suggests a strategic diversification by Indian exporters, allowing them to mitigate losses from other markets and tap into new opportunities.
Interestingly, Indian businesses are also successfully introducing new product categories to the Chinese market, including flat panel display modules for OLED technology and dried beans. These successes highlight the adaptability and growing competitiveness of Indian exporters.
Data from April-September 2025 indicates that India’s exports to China reached $8.41 billion, a notable rise from $6.90 billion in April-September 2024. Following the imposition of US tariffs in August, exports to China experienced a 34% surge, climbing to $1.47 billion in September 2025 from $1.09 billion in September 2024.
Key sectors contributing to this growth include light oils and petroleum preparations, which jumped by an impressive 116%, and telephone set parts, which saw a 162% increase. Frozen shrimps and prawns also recorded a 25% growth, while aluminium exports rose by approximately 59%. Furthermore, items that were previously exported in negligible quantities, such as OLED flat panel display modules, have now achieved significant market penetration in China.
Ajay Sahai, Director General and CEO of the Federation of Indian Export Organisations (FIEO), described this surge as an encouraging sign of India’s export agility and competitiveness in value-added segments. He noted that this trend reflects a re-alignment of supply chains and India’s increasing integration into Asian production networks.
While Sahai acknowledged this growth as a positive step towards diversification beyond traditional markets like the US, he cautioned that it’s too early to consider it a permanent structural shift. He emphasized the need for continued efforts to deepen market presence in Asia, Africa, and Latin America, while maintaining strong trade ties with the US and EU. Ultimately, this trend underscores India’s growing export resilience and its ability to adapt to changing global economic conditions.