New Delhi: US President Donald Trump’s new tariff policy has created a stir in global trade. The reciprocal import duty, which came into effect from April 2, 2025, has forced many countries to retaliate. While the tariff war is reverberating across the world, India is currently mum on its strategy on the matter. But in the meantime, one question is on everyone’s mind—what products does India sell to its neighbours, China and Pakistan, and how might this trade be affected in the current situation?

India’s exports are not just limited to the US and Europe, but its two closest neighbours—China and Pakistan—are also big buyers of Indian products. Even though India’s political relations with these countries have been tumultuous, trade relations have a different story of their own. Let’s take a look at what India sells to these two countries and what this list tells us.

What does China get from India?

Even though the trade figures between India and China are tilted in favor of China, the list of products going from India to China is not small. Indian spices and tea, famous since ancient times, still spread their fragrance around the world, and China is a big market for it. Every year millions of tonnes of tea and spices from India reach the ports of China. A trader said, “The demand for Indian tea in China is constantly increasing, especially Darjeeling and Assam tea.” Apart from this, India is one of the largest cotton producers in the world. China, which is a giant in the textile industry, imports huge quantities of cotton from India every year. Sea foods like shrimp and fish also reach China’s plate from India. Medicines and raw materials required for steel manufacturing, such as iron ore, are also included in this list. In 2024, India exported goods worth about $ 15 billion to China, in which these products play an important role. What is India’s offer to Pakistan? India’s relations with Pakistan may have been tense, but the path of trade is not completely closed. Although the quantity has reduced in the last few years, many essential goods are still sent from India to Pakistan. Medicines are at the top of this list. There is always a demand for Indian generic medicines in the Pakistani market, as they are cheap and effective. A pharma expert said, “Indian medicines are like a lifeline for healthcare in Pakistan.” Tea and coffee also fly the flag of Indian taste in the markets of Islamabad. These beverages reach there in large quantities from India every year. Along with this, fruits and vegetables like onions, ginger, tomatoes and potatoes also cross the border. Cotton and textiles, plastics, rubber and chemical products also reach Pakistan’s industries from India. India’s exports to Pakistan in 2024 were around $ 2 billion, which is less than before, but still important. Impact of tariff war US tariff policy has shaken the global supply chain. China has imposed a 34% tariff on US products in response, while other countries are also preparing to retaliate. India has not yet imposed any retaliatory tariffs, but experts believe it could also impact trade with neighbouring countries. Trade analyst Ramesh Thakur says, “If China and Pakistan increase tariffs on imports from India to protect their markets, it could become a challenge for our exporters. But if India takes steps wisely, it could also be an opportunity.”

Increasing US tariffs on China could increase demand for Indian cotton and seafood there, as China will look for alternative sources. At the same time, trade with Pakistan is already limited, and the tariff war could further affect it. A government official said on the condition of anonymity, “Our priority is to protect our exports. We have to be cautious about trade with our neighbours.”

The way forward

For India, this tariff war has brought both challenges and opportunities. While China and Pakistan are big buyers of Indian products, changes in global trade could take India towards new markets. Will India take advantage of this opportunity and strengthen its position, or will it get entangled in a tariff war? Only time will tell. Final Look
Spices and cotton to China, medicines and vegetables to Pakistan—India’s exports are crucial to its neighbours. But how the tariff war will affect these relationships remains to be seen. How do you see this changing trade landscape? Share your views with us.