INDIA–CHINA TRADE ENTERS A NEW PHASE AS INDIAN EXPORTS RISE SHARPLY

Indian exports to China have risen almost 40% during the first five months through August, with electronics and engineering products among the strongest contributors. The development is notable because India-China trade has traditionally been dominated by Chinese imports into India, producing a large bilateral trade deficit. Growing Indian exports suggest that the relationship may be developing new areas of commercial opportunity even while structural trade imbalances remain. Demand associated with AI infrastructure and data-centre investment is helping Indian manufacturers sell electronics-related products into China. The development could encourage Indian companies to explore China not only as a source of imports but also as a potential market for Indian manufactured goods. At the same time, businesses remain exposed to regulatory, geopolitical and supply-chain risks. The latest trade data therefore points toward a more complicated commercial relationship: competition and dependence remain, but export opportunities are also expanding.