India’s electronics exports to China rose nearly 40% in the five months to August, with electronics and engineering goods emerging as key drivers.
Analysis of recent government data shows the increase comes as global demand for AI-related equipment and expanding data centres create fresh orders for Indian manufacturers.
The rise is notable in a trade relationship still heavily tilted towards China. India’s electronics exports to China have grown from a relatively small base, while the country still imports far more from its neighbour.
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Electronics Exports Gain From AI and Data Centre Demand
India’s electronics exports to China rose more than 15% in the April-August period from the previous year. In the financial year ended March, electronics exports to China had tripled to $3.18 billion.
The products driving the increase include printed circuit board assemblies, smartphones, display modules and telecom equipment.
“Demand for high-end equipment linked to AI products and the rapid expansion of data centres was pressuring suppliers and encouraging more electronics shipments from India,” said Rajoo Goel, Secretary General of the Electronic Industries Association of India.
The gains support India’s longer-term effort to expand domestic manufacturing and secure a larger role in global supply chains. They also come as India and China work to repair ties after relations fell to a multi-decade low, while US tariff policies provide another reason for greater economic engagement.
“The export growth indicated that Indian manufacturing was gaining credibility in global supply chains,” said Pankaj Mohindroo, Chairman of the Indian Cellular and Electronics Association.
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China Trade Gap Remains Wide Despite Export Growth
However, the latest export figures have limitations. Chinese customs data do not show a similar rise in printed circuit boards from India. Much of the increase appears to be in smartphones and other telecom products.
Industry executives said differences in how India and China classify goods make it difficult to determine exactly what is driving the increase.
China accounted for 4.4% of India’s exports in the year ended March, up from just over 3% a year earlier. By comparison, the US accounts for almost a fifth of India’s exports.
The wider trade gap remains substantial. India imported $131.6 billion worth of Chinese goods in the year ended March, nearly 17% of its total imports.
Engineering exports are also rising, increasing about 21% in April-August, including machinery and parts, auto components and hand tools.
The key test now is whether India can sustain the export momentum by moving beyond finished electronics into components, sub-assemblies and stronger domestic design and component capabilities.
Samarjit Kaur is a journalist and communications professional covering technology & emerging digital trends. With a focus on clarity and context, she reports on developments shaping industries and governance. When not reporting, she chooses to plug-in and relax on her playlists and plan her next bucket-list trips!
