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Trade headwinds
Financial Express Mumbai
|March 23, 2026
The silver lining is the rapid growth in India's exports to China
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THE LATEST TRADE numbers for FY26 till February offer contrasting insights on India's performance vis-à-vis its two biggest partners, China and the US, which together account for a quarter of its trade with the world.
If one focuses on exports, the good news is that China has become our third-largest destination, rapidly expanding year-on-year (y-o-y) by 37.7% while India's overall exports were up by only 1.84%. The most important destination—the US, however, is showing signs of flagging as our exports to that country were up by only 3.84%. No doubt, the higher growth in India's exports to the dragon reflects a low base but there are welcome signs of change from the stereotypical pattern of India exporting mainly raw materials like iron ore and intermediates for plastics while importing manufactured goods.
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