India's exports to China recorded a significant increase of 27% in April 2026, while imports from China rose by 20.85% during the same period, according to latest trade data. This development underscores the deepening economic ties between the two Asian giants.
China Overtakes US as India's Largest Trading Partner
In a major shift, China has overtaken the United States to become India's largest trading partner in the fiscal year 2025-26. Bilateral trade between India and China reached $151.1 billion during the period, reflecting robust trade flows.
Widening Trade Deficit
Despite the growth in exports, India's trade deficit with China widened to $112.16 billion in 2025-26. This indicates that imports from China continue to outpace Indian exports, a trend that has persisted over the years.
The data highlights the complex trade relationship between the two countries, with India seeking to boost its exports while managing the import bill. Key sectors contributing to export growth include engineering goods, chemicals, and agricultural products. On the import side, India relies heavily on Chinese electronics, machinery, and pharmaceuticals.
Analysts suggest that India's export growth to China is a positive sign, but the widening deficit calls for strategic measures to enhance market access for Indian products in China. The government is expected to continue efforts to address trade imbalances through bilateral discussions and policy interventions.
Overall, the April trade figures indicate a resilient trade partnership, with both countries benefiting from increased commercial exchanges. However, the persistent deficit remains a concern for policymakers.
