India's China Exports Surge Amid Global Slowdown

India has witnessed a remarkable upswing in its goods exports to China, with growth occurring consistently each month during the initial seven months of the current fiscal year. October saw a peak increase of 42%, contributing to a total rise of 24.7% in outbound shipments to China, reaching $10.03 billion from April to October. This performance contrasts sharply with a marginal 0.63% overall merchandise export growth during the same period, highlighting China's increasing importance as a trade partner.

The robust performance is attributed to strong demand in key sectors, including petroleum products, which more than doubled to $1.48 billion in April-September. Telecom instruments also showed impressive growth, with exports surging over threefold to $778.23 million. Marine product exports also saw an increase, reaching $659.27 million. This sustained export momentum to China provides a crucial buffer for India, particularly as it navigates uncertain global demand and faces significant tariffs from the United States.

Despite China remaining India's largest import source with a trade deficit of $64 billion during April-October, the consistent export growth signals a strengthening bilateral trade relationship. Officials express optimism for the rest of the fiscal year, predicting a positive outlook. This strategic shift in export destinations, driven by resilience and demand, is vital for India's economic stability amidst international trade challenges.