India’s Exports to China Fall Faster Than to Other Partners

India’s exports to China contracted by 22.44% to $1 billion in August, while overall exports declined 9% to $34.7 billion, driven by muted demand, geopolitical issues, and logistics challenges amid a massive slowdown in China. Despite the contraction, China remains India’s fifth-largest export market, although the country continues to heavily rely on imports from China, which increased 15.5% year-on-year to $10.8 billion in the same period.

Top Export and Import Trends

Exports to China are mainly composed of iron ore, marine products, copper, and food items. Meanwhile, India’s major imports from China include electronic components, industrial machinery, IT hardware, and organic chemicals. China has regained its position as India’s top trading partner, with bilateral trade reaching $118.4 billion in FY24, surpassing the US due to higher imports.

Exports to Other Major Markets

Six of India’s top 10 export markets witnessed a contraction in August, including the US (-6.29%), UAE (-2.39%), Singapore (-39.25%), Bangladesh (-27.85%), and Australia (-24.05%). The US remains India’s largest export destination, followed by the UAE, the Netherlands, and the UK.

Overall Import Growth and Gold Impact

India’s overall imports grew 3% year-on-year to $64.3 billion in August, with gold imports doubling and contributing significantly to the increase. Imports from Switzerland, mainly driven by gold, saw 80% growth, reaching $3.9 billion.