India’s merchandise imports from China rose to a record $79.41 billion (nearly $80 billion) during the first half of 2026, registering a 21.8% year-on-year increase, underscoring the country’s continued reliance on Chinese machinery, electronics, and industrial inputs despite ongoing efforts to diversify supply chains.
At the same time, India’s exports to China recorded a strong recovery, increasing by 37% during the January-June 2026 period. However, the sharp rise in imports continues to keep the bilateral trade imbalance heavily tilted in China’s favour.
Industry experts attribute the surge in imports to robust domestic demand for electronic components, electrical machinery, chemicals, renewable energy equipment, and manufacturing inputs, reflecting India’s expanding industrial and infrastructure activities.
The latest trade figures come amid sustained growth in India’s overall imports, particularly in electronics, machinery, crude oil, and precious metals, contributing to a widening merchandise trade deficit. Recent Commerce Ministry data showed India’s merchandise imports grew strongly in June 2026, while exports also maintained double-digit growth despite global geopolitical uncertainties.
China remains India’s largest source of imported goods, with electronic components, telecom equipment, industrial machinery, chemicals, and active pharmaceutical ingredients (APIs) forming a significant share of inbound shipments. The increase also reflects rising demand from India’s manufacturing sector, which continues to depend on Chinese intermediate goods.
While exports to China have shown encouraging momentum, trade analysts note that achieving a more balanced bilateral trade relationship will require sustained growth in high-value Indian exports and greater diversification of export baskets.
The latest figures highlight the deep economic interdependence between Asia’s two largest economies, even as both countries continue to pursue policies aimed at strengthening domestic manufacturing and reducing strategic supply chain vulnerabilities.