Indian exports to China rose almost 40 per cent in the five months through August, with electronics and engineering goods among the biggest drivers, government data shows.
Indian exports to China rose almost 40 per cent in the five months through August, with electronics and engineering goods among the biggest drivers, according to an analysis of government data reported by Business Standard. Electronics exports to China tripled to USD 3.18 billion in the fiscal year ended March, driven by products including printed circuit board assemblies, smartphones, display modules and telecom equipment, and continued to rise more than 15 per cent in the April to August period from a year earlier. Rajoo Goel, Secretary General of the Electronic Industries Association of India, said the surge in exports to China was partly driven by pressure on suppliers to meet demand for high-end equipment required for artificial intelligence-related products and as data centres proliferate. Engineering exports to China also increased approximately 21 per cent in the April to August period, including machinery and parts, auto components and hand tools.
Despite the gains, India’s trade imbalance with China remains vast. China accounted for 4.4 per cent of India’s exports in the year ended March, compared with just over 3 per cent a year earlier, while India imported USD 131.6 billion of Chinese goods in the same period, accounting for almost 17 per cent of its imports. Pankaj Mohindroo, Chairman of the Indian Cellular and Electronics Association, said the increase showed that Indian manufacturing was beginning to win credibility in one of the world’s most competitive global value chains, and called for sustaining exports while expanding across components, sub-assemblies and finished products and deepening Indian design and component capabilities. Industry executives noted that differences in how India and China classify goods made it difficult to determine precisely what was behind the increase, as Chinese customs data did not record a comparable rise in printed circuit boards arriving from India.
Source: Business Standard
