India's Shipments to China Skyrocket
The Commerce Ministry disclosed that outbound goods to Beijing jumped 67.35% compared to the same period last year, reaching $2.04 billion. The export boom was fueled primarily by shipments of electronics, seafood, and farm commodities, data indicates.
Simultaneously, India brought in $11.7 billion worth of Chinese goods during December—a 20% annual increase—from its second-biggest trade partner after the US.
A significant milestone emerged in the April-December 2025 period: China overtook the US as India's top goods trading partner, with bilateral commerce totaling $110.20 billion versus $105.31 billion with Washington.
This export surge unfolds against the backdrop of punishing American trade measures. media reported that India's shipments to the US declined 1.8% to $6.8 billion in December, weighed down by a severe 50% tariff Washington imposed in August 2025—half of which specifically penalized New Delhi for purchasing Russian oil. Indian officials have consistently defended these energy acquisitions as serving national interests.
The warming India-China relationship marks a stark reversal from 2020's deadly Himalayan border confrontation that killed troops from both nations. Prime Minister Narendra Modi and President Xi Jinping convened at the Shanghai Cooperation Organization summit in September 2025, pledging expanded bilateral cooperation.
New Delhi is now preparing to remove barriers preventing Chinese firms from competing for government contracts—restrictions originally enacted following the 2020 military clash. Direct air service between the countries restarted in October 2025 after a five-year suspension, while Beijing eased visa requirements for Indian citizens in December.
Meanwhile, trade negotiations between India and the US have stalled despite multiple diplomatic sessions, with President Donald Trump repeatedly threatening additional tariffs. Trump has endorsed bipartisan legislation targeting Moscow's trading partners with extra levies.
Washington has also warned of imposing blanket 25% tariffs on any country engaging commercially with Iran—part of an intensifying strategy to economically isolate the nation amid persistent internal turmoil. India ranks among Tehran's primary trade partners.
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