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China Boosts Indian Exports Easing Impact Of Trump Tariffs And Preventing Major Trade Loss

Amid declining exports due to high US tariffs under President Donald Trump, India avoided major trade losses as exports to China increased sharply, rising 42% in October alone.

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Edited By: Vinay
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India China Trade (Credit: OpenAI)

New Delhi: Despite trade pressure from the United States, India was partially shielded from severe export decline due to rising demand from China. Economic data shows that exports to China grew consistently throughout the financial year. In October alone, exports surged 42 percent. This increase helped reduce the negative impact caused by high US tariffs. Analysts say China’s import growth acted as a key stabiliser for India’s trade performance. Without this support, export losses could have been higher.

What Has Been The Impact Of Trump Tariffs?

US President Donald Trump imposed a 50 percent tariff on Indian goods, causing a significant reduction in shipments. As a result, India’s overall exports fell by 11.8 percent in October, dropping to 34.38 billion dollars. The tariff pressure hit multiple sectors. Reports suggest that global demand uncertainty further affected export performance. However, increased Chinese orders helped mitigate the decline. Experts describe this phase as one of the toughest for Indian exporters.

What Are The Overall Export Figures To China?

From April to October, India’s exports to China rose 24.7 percent compared to the previous year. The total export value reached 10.03 billion dollars. This growth has been driven mainly by petroleum products, telecom equipment and marine goods. China continues to be one of India’s largest trade destinations. Despite global slowdown concerns, commercial ties between both nations strengthened during this period. Officials describe this as one of the strongest bilateral trade phases.

How Has China Performed As An Import Source?

China remains India’s top import partner. Between April and October, India imported 73.99 billion dollars worth of goods from China. During the same period, trade deficit with China reached 64 billion dollars. While this indicates high dependency on Chinese supplies, export growth helped balance the equations. Continued trade engagement shows economic resilience between the two countries. Officials say strategic cooperation played a key role.

Which Export Sectors Saw Maximum Growth?

According to Economic Times, petroleum exports to China more than doubled during April to September, reaching 1.48 billion dollars. This reflects strong demand for industrial fuel within Chinese markets. Telecom equipment exports rose sharply from 207.26 million to 778.23 million dollars. Marine product exports also increased from 548.36 million to 659.27 million dollars. These sectors contributed significantly to the overall export recovery.

How Did US Pressure Affect Overall Trade?

Even though exports to China increased, India’s total exports only grew marginally by 0.63 percent in the period. Increased gold imports led to a record trade deficit of 41.68 billion dollars in October. Analysts warn that US tariff pressure could affect long-term competitiveness. Continued diversification of trade partners is seen as crucial. Steady Chinese demand proved strategic for balancing immediate losses.

What Outlook Does The Report Suggest For Future Trade?

Experts believe India needs to strengthen export resilience through market diversity and better diplomatic engagement. Trade with China may continue to offer support in the short term. However, reliance on a limited number of markets can pose risks. Analysts encourage industrial upgrades to improve competitiveness. The report highlights the importance of mitigating tariff vulnerabilities. Broader strategy planning is considered essential for sustainable growth.

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