India’s Exports to China Surge by 27% in April as Bilateral Trade Deficit Widens to $10.2 Billion

China
Despite a substantial 27% increase in outbound shipments to China reaching $1.77 billion, India’s trade deficit swelled to $10.2 billion due to a steep rise in industrial imports.
May 18, 2026 | New Delhi: According to official data released by the Union Ministry of Commerce, India’s merchandise exports to China surged by 27% in April, reaching $1.77 billion compared to $1.39 billion during the corresponding month last year. However, accelerated inbound shipments from the neighboring economic giant pushed the monthly trade deficit to $10.2 billion. The overall bilateral trade volumes underscore China’s position alongside the United States as one of India’s most critical global commercial partners.
The government data indicates a total 20.85% jump in trade velocity with neighboring corridors. While Indian exporters added $375.3 million to their trade sheet with China this April, imports concurrently advanced from $9.90 billion to $11.97 billion, expanding the net import-export gap from $8.51 billion to $10.2 billion. For the fiscal year 2025–26, aggregate bilateral trade between India and China touched $151.1 billion, leaving an annual trade deficit of $112.6 billion. Conversely, India’s trade balance with the United States remained favorable, with April exports inching up from $8.38 billion to $8.47 billion, while American imports dropped by 4.67% to settle at $5.27 billion.

| Trade Indicator (April) | Year 2025 ($ Billion) | Year 2026 ($ Billion) | Growth Status |
| Exports to China | 1.39 | 1.77 | Up by 27% |
| Imports from China | 9.90 | 11.97 | Up by 20.9% |
| Trade Deficit with China | 8.51 | 10.20 | Widened |
The commodity matrix reveals that India remains heavily reliant on China for manufacturing inputs. Core imports consist of heavy industrial machinery, electronic components, integrated circuits (ICs), dairy processing equipment, lithium-ion battery cells, and raw materials for solar panels. On the outbound ledger, India’s primary exports continue to be driven by primary commodities, including iron ore, copper and copper fabrications, marine products like shrimp, and agricultural produce like red chilies.
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