India’s Exports to China Buck Global Trend, Increase by 8.07% in 2023-24 Fiscal Year

India has demonstrated resilience in its trade relations with China, as highlighted by the latest data released by the Ministry of Commerce and Industry (MoCI). Despite a downturn in China’s imports from the world at large, India managed to boost its exports to the neighboring dragon by 8.07% in the fiscal year 2023-24, reaching a total of USD 16.67 billion. Contrary to this positive trend, India’s imports from China saw a more moderate growth, increasing by 3.29% to USD 101.75 billion during the same period.

This notable surge stands out against the backdrop of a challenging economic landscape in China. During CY2023, China witnessed a 5.5% decline in merchandise imports, while India’s exports to the country grew by 7.1% year-on-year. This development coincides with China’s own decrease in merchandise exports, marking the first contraction since 2016, with a decline of 4.6%.

The economic slowdown in China during 2023 was marked by various challenges, including declining property investment, increasing debt risks, and sluggish consumption growth. Despite these headwinds, India managed to maintain its momentum in exporting goods to its northern neighbor.

Among the key export items from India to China during the fiscal year 2023-24, iron ore and concentrates, cotton yarn, quartz, and unwrought aluminum emerged as the leading categories. These exports underscore India’s diverse export portfolio, tapping into various sectors to meet China’s demand.

On the import side, machinery of all kinds dominated India’s imports from China, constituting nearly 50% of the total imports. Additionally, other significant imports from China included plastics and its articles, chemicals, steel and steel products, and fertilizers, highlighting India’s reliance on Chinese goods across various sectors.

The sustained growth in India’s exports to China signals the resilience and adaptability of Indian industries in navigating global trade dynamics. This trend also underscores the potential for further strengthening bilateral trade relations between the two Asian giants, despite broader global economic uncertainties. As both countries continue to explore opportunities for cooperation and trade diversification, the prospects for mutual economic growth remain promising.

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