India is moving more factory-made goods into China, and the pickup is showing up clearly this year. An analysis of government numbers shows exports to China rose almost 40% between April and August. For the fiscal year that wrapped in March, India's exports to China reached $3.18 billion, around three times the prior year's level.
Electronics and engineering items are doing the heavy lifting. The jump to $3.18 billion last fiscal year was fueled by assemblies of printed circuit boards, smartphones, display modules, and telecom equipment. Those electronics flows kept climbing in the new fiscal year, up more than 15% in April through August from a year earlier. Exporters also said engineering consignments to China grew roughly 21% in that April-August period, covering machinery with spare parts, auto components, and hand tools.
Executives point to demand tied to AI hardware and the buildout of data centers. The Electronic Industries Association of India's secretary general, Rajoo Goel, said, "The surge in exports to China is partly driven by pressure on suppliers to meet the demand for high-end equipment required for AI-related products and as data centers proliferate." That momentum also fits New Delhi's long-running push to scale up manufacturing and plug deeper into global supply chains. "It shows that Indian manufacturing is beginning to win credibility in one of the world's most competitive global value chains," said Pankaj Mohindroo, chairman of Indian Cellular and Electronics Association. Arun Kumar Garodia, who leads Corona Steel Industry Pvt. as managing director, said the modest uptick may indicate that, in the current geopolitical environment, China is becoming more open to buying Indian products.
There is a caveat in the data: Chinese customs figures do not reflect a comparable jump in circuit board imports from India, with much of the change instead categorized under smartphones and other telecom products. Industry executives say differences in how goods are classified likely muddle the exact picture. And the overall trade relationship remains one sided.
In the year ended March, India bought $131.6 billion of goods from China, almost 17% of India's total imports, far above what it sold to its neighbor. China accounted for 4.4% of India's exports over that period, up from just over 3% a year earlier, while the US remains India's top market at almost 20%. Exporters expect shipments to China to keep growing, and Mohindroo added that the next step is to sustain sales and broaden them into components, sub-assemblies, and finished goods, while strengthening India's own design and component base.
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For now this is a small but rising stream, not a tidal wave. If AI and data-center spending keeps pulling in Indian parts, it can support a wider set of local manufacturers, particularly in electronics and engineering. The bigger story for your wallet is that India is inching further into global supply chains. That can translate into steadier revenue for companies making components and sub-assemblies, even as the China trade gap stays wide.
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