economy
January 16, 2026
India’s exports to China surge in December while shipments to U.S. decline as Trump tariffs bite
Exports to China surged 67% in December to $2 billion, in contrast to goods shipped to the U.S. — New Delhi's biggest export market — that dropped 1.8% to $6.8 billion.
TL;DR
- Indian exports to China surged 67% in December to $2 billion, while exports to the U.S. decreased by 1.8% to $6.8 billion.
- The U.S. has imposed significant tariffs on Indian goods, prompting New Delhi to seek alternative export markets.
- India's exports to mainland China rose nearly 37% and to Hong Kong by over 25% in the first nine months of the fiscal year.
- China has become India's largest goods trading partner, surpassing the U.S. in value for the April-December period.
- India has a trade surplus with the U.S. but a significant trade deficit with China.
- Discussions between Indian and Chinese officials aim to stabilize and rebuild bilateral ties, with a focus on business and people-centric engagements.
- India is reportedly close to finalizing a trade deal with the European Union and has entered into trade pacts with the UK, Oman, and New Zealand.
- Recent comments from a U.S. Commerce Secretary suggested the India-U.S. trade deal fell through due to a lack of communication from Prime Minister Modi, which the Indian side called 'inaccurate'.
- India's trade secretary stated that New Delhi is 'very near' to finalizing a deal with Washington.
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