India exports grow 0.61% YoY to $36.56 bn; China surges 55%, Hong Kong jumps 98%, while US shipments fall over 21%
By S. JHA
Mumbai, February 16, 2026 — India’s exports in recent months have shown sharp jump for China and Hong Kong per latest data of the Ministry of Commerce. Rising exports to China and Hing Kong have come in the wake of India raising the issue with Beijing on trade imbalance in recent high-level meetings. India had a trade deficit in excess of $100 billion in the last financial year.
India’s exports data for January 2026 reveals a modest but resilient performance amid shifting global trade currents. Total exports rose 0.61% year-on-year to $36.56 billion, according to provisional figures, signalling steady momentum despite volatility in key Western markets.
US Drag, China Surge
Exports to the United States — India’s largest trading partner — fell sharply by 21.77% in January 2026 to $6.59 billion compared to $8.43 billion in January 2025. The decline underscores headwinds in trans-Atlantic trade flows and possible recalibration of demand.
In contrast, exports to China jumped 55.65% to $1.63 billion, reflecting a strong rebound in select sectors. Even more dramatic was the 98.72% surge in shipments to Hong Kong, nearly doubling year-on-year.
The sharp uptick in exports to China and Hong Kong align with recent focus among BRICS nations to boost trade among the constituents in the wake of tariffs imposed by the US. Washington had doubled down on BRICS nations by slapping high tariffs.
China, India, Brazil, and South Africa faced excessive tariffs from the US. Trump only recently announced the lowering of tariffs on India, from 50 percent to 18 percent. But Brazil and South Africa still face 50 percent tariffs.
The United Arab Emirates also emerged as a key growth driver, with exports rising 29.27% to $3.97 billion.
Mixed Signals from Europe
European markets showed a varied trend. Exports to Germany grew 9.55%, while shipments to the United Kingdom fell 7.88%. Exports to France declined 11.20%. However, Spain and Belgium posted double-digit gains, indicating selective demand strength within the European Union.
Neighbourhood & Emerging Markets
Exports to Bangladesh declined 20.25%, while Saudi Arabia saw a 6.05% rise. Shipments to Vietnam surged 45.21%, underlining India’s expanding footprint in Southeast Asia.
For the April 2025–January 2026 period, cumulative exports grew 2.20% to $366.63 billion, compared to $358.75 billion in the corresponding period last year.
Strategic Diversification
The India exports data for January 2026 reflects a strategic diversification underway. While dependence on the US market appears to be easing in the short term, Asian and Gulf markets are absorbing higher volumes. Trade analysts say sustaining growth will depend on currency stability, global commodity prices and the outcome of ongoing trade negotiations with major economies.
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