New data released by India's Commerce Ministry on Tuesday reveals a substantial increase in India's imports from China. For the April-August 2026-27 period, imports from China reached an estimated $65.49 billion, up from $51.56 billion in the corresponding period of 2025-26.
China: India's Top Import Source
During the five-month period, China solidified its position as India's primary import source. Following China, Russia was the second-largest source, with imports valued at $41.44 billion. The United States ranked third at $28.09 billion, while the UAE contributed $24.36 billion to India's imports. Other significant import partners included South Korea ($12.10 billion), Saudi Arabia ($11.81 billion), Singapore ($11.40 billion), Japan ($9.71 billion), Hong Kong ($9.41 billion), and Germany ($9.16 billion).
Export Destinations and Overall Trade Growth
On the export front, the United States remained India's largest export destination, with goods and services totaling $42.79 billion in April-August 2026-27, an increase from $40.31 billion in the previous year. The UAE was the second-largest destination at $13.59 billion, with China receiving $9.61 billion in Indian exports. Other key export markets included Singapore ($9.50 billion), the Netherlands ($6.95 billion), and the UK ($6.15 billion).
India's overall exports of merchandise and services demonstrated robust growth, rising to $399.27 billion in April-August 2026-27 from $345.55 billion a year earlier, marking a 15.55% increase. Concurrently, overall imports expanded by 18.01% to $459.65 billion, up from $389.49 billion. This led to an overall trade deficit of $60.38 billion, a 37.42% increase from $43.94 billion in the prior period.
August 2026 Performance
Focusing on August 2026, overall exports were estimated at $82.68 billion, a significant rise from $65.93 billion in August 2025. Overall imports also increased to $92.09 billion from $77.55 billion. Notably, the overall trade deficit narrowed in August 2026 to $9.41 billion, down from $11.62 billion in August 2025.
- Merchandise exports: Grew 26.12% to $43.81 billion in August 2026.
- Services exports: Increased by 24.61% to an estimated $38.87 billion.
The Commerce Ministry highlighted that India's overall exports in August 2026 experienced a growth of 25.41%.