New Delhi: India’s imports from China have grown by almost 28 percent in the first quarter of this financial year, marking a major increase. India imported roughly $38.04 billion worth of goods from China between April and June 2026, according to latest trade data published Monday by the Ministry of Commerce and Industry.
In comparison, between April and June 2025, India imported roughly $29.73 billion worth of goods from China.
India’s overall merchandise imports have increased to $216.18 billion during the first quarter of this year—a 19.89 percent increase from the same period last year.
Indian merchandise exports to China grew by 27.5 percent in the first quarter of the current financial year to $5.6 billion. During the same period last year, Indian exports of goods to China stood at roughly $4.39 billion.
China has been the biggest source of goods for the Indian economy for at least the past half decade. Indian imports from China grew from $76.3 billion in FY 2017-2018 to $131.6 billion in FY 2025-2026. India’s overall imports from China have consistently increased by double digits in the last few years.
In FY 2023-2024 India’s imports from China stood at $101.7 billion. This grew by 11.5 percent the following year to hit $113.4 billion. Last year it grew a further 16 percent to touch $131.6 billion. A large part of India’s imports from China are electronic goods. In the previous financial year, India imported $46.36 billion worth of electronic goods (HS Code: 85) from China.
India’s imports of electronic goods have increased, as its own exports of electronic goods globally have seen a steep increase in the last few years. For instance, India has become a key supplier of iPhones for Apple globally.
In the first quarter of FY 2026-2027, India’s imports of electronic goods increased by 43.7 percent to $38.46 billion. In the same period of last year, India’s imports of electronic goods stood at $26.75 billion. The increase of imports in electronic goods could indicate the growth of Chinese imports into the Indian economy.
China is also the largest source of machinery to the Indian market. Last year, India imported roughly $29.45 billion worth of machinery (HS Code: 84) from China. In the first quarter of this financial year, machinery imports have marginally increased to $16.68 billion from $14.09 billion in the same period of last year.
In the last few months India has been cautiously rolling back import restrictions it had placed on Chinese goods, following the Galwan clashes in the summer months of 2020. In March, India made it clear that it would fast track the approval of investments from firms with minor Chinese stakes.
These investment rules were eased to promote domestic manufacturing and luring foreign capital into the Indian markets. Similarly just earlier this month, India allowed four Chinese-linked power equipment manufacturing companies to bid for government projects.
India eased the investment curbs on Chinese companies in sectors such as capital goods, electronic capital goods, and electronic components. New Delhi has sought to calibrate the revival of market access for Chinese-linked companies, as both countries have sought to stabilise ties.
India-China ties cratered in 2020, following the Galwan clashes. Eventually in October 2024, the two sides struck an agreement to disengage across friction points along the Line of Actual Control (LAC). This was followed by Prime Minister Narendra Modi’s meeting with Chinese President Xi Jinping on the margins of the BRICS summit in the Russian city of Kazan in October 2024.
Last year Modi travelled to China for the Shanghai Cooperation Organisation (SCO) Heads of States summit and met with Xi. Both sides introduced a number of confidence building measures including reintroduction of direct flights, issuance of tourist visas and resumption of the Kailash Mansarovar Yatra.
However, when it comes to trade, even as Indian firms continued to import from China, the government maintained strong curbs in certain sectors.
India’s overall imports in the first quarter increased from the same period last year, primarily due to the larger increase in imports of petroleum products, electronic goods, machinery and gold.
India’s overall trade deficit in goods grew from $68.7 billion in the first quarter of FY 2025-2026 to $86.86 billion in FY 2026-2027. Nevertheless, its overall merchandise exports grew from $111 billion to around $129 billion in the first quarter of this year.
The increase of imports in petroleum products and gold could be attributed to the increasing prices of these commodities in the past few months. Petroleum prices saw hikes during the war between the US and Iran. While the ceasefire had cooled crude oil prices, there has been a slight spike in recent days, after the US and Iran have renewed strikes against one another.
(Edited by Amrtansh Arora)
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