India is implementing a sophisticated, diversified strategy to boost exports to China while managing a difficult “hard decoupling”. While exports to China rose 37% to $19.47 billion in 2025-26, imports also jumped to $131.63 billion, pushing the trade deficit to $112.6 billion. Government officials emphasize that Chinese inputs remain the “backbone” of Indian production, particularly in electronics, APIs for pharmaceuticals, and auto components. To reduce this dependency, an Inter-Ministerial Committee (IMC) is identifying China-intensive goods that can be sourced from alternate partners like Taiwan, Japan, and the EU. Simultaneously, the Production Linked Incentive (PLI) scheme is being leveraged to build domestic capacity and widen India’s export basket in high-growth sectors like printed circuit boards and agri-commodities.