India-China Trade: China Helps Offset Major Export Losses, Petroleum and Electronics Lead the Way

New Delhi: India’s trade deficit with China has long been a concern, standing at nearly $100 billion. However, recent trends show a significant boost in Indian exports to China, helping mitigate losses elsewhere.

According to the Ministry of Commerce, India’s exports to China rose from $9.20 billion during April–November 2024 to $12.22 billion in the same period of 2025, marking a remarkable 32.83% increase. This growth highlights the benefits of export diversification, especially at a time when the United States has imposed steep tariffs of 50% on Indian goods.

What India Exported:
The surge in exports was driven primarily by:

• Petroleum products – the largest contributor
• Electronics – second major category
• Marine products and crude oil

An official stated that this rapid growth reflects strong demand for Indian goods in China and the ability of Indian exporters to strengthen their foothold in the Chinese market.

Why This Matters:
India’s trade with China has historically been imbalanced, with imports far exceeding exports. The increase in exports, particularly in petroleum and electronics, is helping narrow the trade deficit. This shows that Indian companies are successfully diversifying markets and capitalizing on new opportunities to offset losses from other regions.

Understanding Trade Deficit:
A trade deficit occurs when a country imports more goods and services than it exports, resulting in higher spending abroad than income from exports. Simply put, it is the shortfall when a nation pays more for imported goods than it earns from exported products.

This development underscores the importance of strategic market diversification, allowing India to reduce reliance on markets where trade barriers or tariffs may impact growth.