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By- Parthasarathi Chandra
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For India, America, Not China, Is Most Important; Government Data Tells The Whole Story
The government has released its export and import figures with various countries around the world. These figures clearly show which country is better for India’s economic health, the US or China. While India suffered significant losses on trade with China in August, the US remains a profitable country for India even after imposing a 50 percent tariff.
No matter what the US President and his trade gurus say against India, even if the US imposes a 50% tariff on India, no matter how much India improves its relations with China. Despite all this, the US remains the most important country for India, and there’s a reason for this. Even after the imposition of the 50% tariff, India’s largest trade in August was with the US, not China, Russia, or Europe. This is despite India’s exports to the US declining by nearly 14% compared to July, while exports increased by more than 7% compared to the same period last year. Significantly, China’s trade with India is even lower than that of the UAE and the Netherlands. Let us also explain the figures presented by the Indian government.
India’s Exports to the US in August
After the US administration imposed a 50 percent tariff on Indian products in August, India’s exports to the US declined by approximately 14 percent on a monthly basis to $6.86 billion. According to trade data for August 2025 released by the Commerce Ministry on Monday, Indian exports to the US declined by approximately 14 percent compared to July. In July, India exported $8 billion to the US. Despite the decline in exports on a monthly basis, the US remained India’s largest export destination on an annual basis. This year, exports to the US increased by 7.15 percent compared to August 2024.
America is more important than China
As we said, America is more important to India than China. This isn’t just a statement. Government data bears this out. China is not the second or third largest export destination for India, but the fourth. In August, India exported $1.21 billion to China, which is nothing compared to the US. In August, India exported $3.24 billion to the UAE and $1.83 billion to the Netherlands. After China, Britain came next, exporting $1.14 billion worth of goods. US President Donald Trump’s administration increased tariffs on Indian products in two phases. First, a 25 percent duty was imposed on August 7th, and then an additional 25 percent duty was imposed on August 27th.
Significant losses from China
Conversely, India’s dependence on China is clearly visible on imports. Although India exported goods worth just over $1 billion to China in August, imports totaled $10.9 billion. This means that India suffered the largest trade loss from China, amounting to $9.69 billion. India also purchased goods worth $4.83 billion from Russia. India’s trade deficit with the UAE is over $1 billion. In August, India imported goods worth $4.66 billion from the UAE, while India benefited by nearly $4 billion from the United States, as India reduced its imports from the US compared to its exports. In August, India’s imports from the US were $3.6 billion, while India’s imports from Saudi Arabia were $2.52 billion.
