January-April imports from China +4.6%

Data from China's General Administration of Customs, two-way trade has risen by 4.5% and reached $44.34 billion by the end of April. Although India's exports to China have increased by 3.7%, their market share remains relatively small

India's imports of Chinese goods have continued to increase in 2023, growing by 4.6% during the first four months and reaching a total of $37.86 billion. Two-way trade between the two countries has also experienced a 4.5% year-on-year climb, amounting to $44.34 billion by the end of April, as per data from China's General Administration of Customs. India's exports to China have seen a 3.7% rise, although they still account for a smaller proportion of the overall bilateral trade. The surge in imports from China reflects a growing demand for intermediates required by Indian industries and a persisting reliance on sourcing from China, which is a matter of concern for New Delhi given the strained political ties between the two nations.

In 2022, trade with China set a record high at $135.98 billion, propelled by a 21% increase in imports. The trade deficit surpassed $100 billion for the first time that year. Notably, India's major imports from China include active pharmaceutical ingredients (APIs), chemicals, electrical and mechanical machinery, auto components, and medical supplies.

On the other hand, trade with the European Union (EU) and the United States, China's second- and third-largest trading partners, showed declines. Trade with the EU decreased by 3.5% to $262.53 billion, while trade with the U.S. contracted by 11.2% to $217.92 billion. Both the EU and the U.S. have been emphasizing the importance of diversifying supply chains away from China to mitigate risks.