Kingdom’s trade with India goes up 31.5% in Q1
Kingdom’s trade with India goes up 31.5% in Q1
Trade experts are of the view that should current growth rates persist, total bilateral trade could surpass previous annual benchmarks, reinforcing India’s position as an emerging partner in the Kingdom’s global trade network.
Cambodia’s bilateral trade with India rose 31.5 percent year-on-year in the first quarter (Q1) of 2026 to reach $119 million, according to data released recently by the General Department of Customs and Excise (GDCE).
The figures highlight a notable acceleration in commercial ties between the two countries, driven largely by a surge in Cambodian exports. Outbound shipments to India climbed by 66.5 percent to $47 million, reflecting growing demand for Cambodian goods and a gradual diversification of export markets beyond traditional partners in the region.
Imports from India also increased, though at a more moderate pace. Cambodian purchases of Indian products rose by 15.8 percent to $72 million during the January-March 2026 period. This resulted in a continued trade deficit for Cambodia, but one that is narrowing compared to previous periods due to the faster growth in exports.
Trade officials say the uptick reflects both structural and short-term factors. On the supply side, Cambodian manufacturers—particularly in sectors such as garments, agricultural commodities, and light manufacturing—have been seeking new markets amid shifting global demand patterns. India, with its large and expanding consumer base, has emerged as an increasingly attractive destination.
At the same time, imports from India have been supported by demand for pharmaceuticals, machinery, and raw materials used in Cambodia’s domestic industries. India’s competitive pricing and established manufacturing base have made it a reliable supplier, especially as businesses look to diversify sourcing options.
Analysts note that the growth in bilateral trade also aligns with broader diplomatic and economic engagement between Cambodia and India. In recent years, both governments have signalled interest in strengthening economic cooperation, including through trade facilitation measures, business forums, and discussions on potential investment partnerships.
Despite the positive momentum, trade volumes remain relatively modest compared to Cambodia’s commerce with major partners such as China, the United States, and regional ASEAN economies. However, the current growth trajectory suggests significant untapped potential.
Economists point out that logistical challenges, limited direct shipping routes, and regulatory differences continue to constrain trade expansion. Addressing these barriers could further accelerate bilateral flows. Improved connectivity—both physical and digital—along with streamlined customs procedures, are seen as key areas for development.
The sharp increase in exports may also reflect early gains from Cambodian efforts to upgrade product quality and meet international standards, making its goods more competitive in markets like India. Continued investment in these areas will be critical to sustaining export growth over the longer term.
Trade experts expect Cambodia–India commerce to maintain an upward trend through 2026, supported by resilient demand and ongoing policy engagement. If current growth rates persist, total bilateral trade could surpass previous annual benchmarks, reinforcing India’s position as an emerging partner in Cambodia’s global trade network.
It may be recalled here that Cambodia’s trade with India was estimated at $410 million in 2025, an increase of 19 percent year-on-year. The growth, however, was uneven, with a sharp rise in imports offset by a decline in exports.
According to GDCE data, imports surged by 38 percent to touch $263 million in 2025, indicating increased demand in Cambodia for Indian goods. In contrast, Cambodian exports to India declined by 4.5 percent in 2025 to an estimated $147 million, signalling challenges for exporters amid shifting demand patterns and global economic pressures.
- 08:03 28/04/2026
