Archive · 21 Sep 2026
India’s electronics exports to China surge, but trade deficit persists
India is selling more electronics and manufactured goods to China than before.
Electronics exports to China tripled to $3.18 billion in the fiscal year that ended in March.
Exports then rose almost 40% in the five months through August.
Products included smartphones, telecom equipment and parts used in electronics.
Industry representatives say demand from artificial-intelligence products and data centers helped increase sales.
Engineering exports such as machinery and auto parts also grew.
However, China still sells far more goods to India than India sells to China.
India imported $131.6 billion from China in the year ended March.
Experts want India to keep improving its components, designs and finished products.
India’s exports to China rose nearly 40% in the five months through August, government data show.
Electronics exports to China tripled to $3.18 billion in the fiscal year ended March.
Printed circuit board assemblies, smartphones, display modules and telecom equipment drove much of the electronics increase.
Engineering exports, including machinery, auto components and hand tools, rose about 21% during April-August.
India imported $131.6 billion in Chinese goods during the year ended March, leaving a large trade deficit.
- Who
- Indian exporters, industry executives and the governments of India and China.
- What
- India’s electronics and engineering exports to China increased sharply, while the bilateral trade deficit remained very large.
- When
- Electronics exports tripled in the fiscal year ended March; overall exports rose nearly 40% in the five months through August, with engineering exports measured for April-August.
- Where
- Trade between India and China.
- Why
- Demand linked to artificial-intelligence products and data centers contributed to growth, while India is seeking to expand manufacturing and its role in global supply chains.
Growth and manufacturing gains
Trade imbalance and data cautions
Meaning of the export increase
Growth and manufacturing gains
Indian industry representatives say the rise shows that Indian manufacturing is gaining credibility and benefiting from demand for AI-related equipment and data centers.
Trade imbalance and data cautions
The increase comes from a relatively low base and has done little to reduce India’s large trade deficit with China.
What is driving electronics exports
Growth and manufacturing gains
Indian executives identify electronics, including smartphones, telecom equipment and related components, as important growth areas.
Trade imbalance and data cautions
Chinese customs data do not record a comparable increase in printed circuit boards, and differing product classifications make the exact source of growth difficult to determine.
Future trade outlook
Growth and manufacturing gains
Exporters expect shipments to continue growing across components, sub-assemblies, finished products and engineering goods.
Trade imbalance and data cautions
China remains a relatively small destination for Indian exports, while Chinese goods account for almost 17% of India’s imports.
- Electronics exports
- Tripled to $3.18 billion in the fiscal year ended March.
- Overall export growth
- Indian exports to China rose almost 40% in the five months through August.
- Engineering export growth
- Engineering exports to China increased about 21% in April-August.
- Major electronics products
- Printed circuit board assemblies, smartphones, display modules and telecom equipment.
- Chinese imports into India
- India imported $131.6 billion in Chinese goods in the year ended March.
- China’s share of Indian exports
- China accounted for 4.4% of India’s exports in the year ended March, up from just over 3% a year earlier.
- Data discrepancy
- Chinese customs data do not show a comparable increase in printed circuit board arrivals from India; classification differences may explain the gap.