India is diversifying its strategy to enhance exports to China while reducing its dependence on imports from the country. Exports to China surged by 37%, reaching $19.47 billion in 2025-26, up from $14.25 billion the previous year. However, imports also rose by 16% to $131.63 billion, resulting in a trade deficit that increased from $99.2 billion to $112.6 billion. A senior government official noted that while complete decoupling from China is challenging due to the reliance on Chinese raw materials and components for domestic manufacturing, India is focused on strengthening its own production capacities. Key sectors seeing growth in exports include printed circuit boards, electrical appliances, and agricultural commodities. To further reduce import dependence, the government is identifying goods that are heavily sourced from China and exploring alternatives from countries such as Taiwan, South Korea, Japan, and the European Union. The Inter-Ministerial Committee (IMC) is actively monitoring trade patterns and implementing corrective measures to support this strategy.