India-China trade: The numbers behind the relationship as Xi visits Delhi
Chinese President Xi Jinping's visit highlights India-China trade's stark imbalance. India's imports from China vastly exceed its exports, creating a record deficit. Chinese industrial inputs are deeply embedded in India's critical manufacturing sectors. Bilateral goods trade reached $151 billion, with imports dominating the exchange. This economic relationship unfolds against the backdrop of an…
The complex India-China relationship came into sharper focus during Chinese President Xi Jinping's visit to India for the 18th BRICS Summit. While trade emerged as a key indicator of their economic ties, the relationship remained marked by a significant trade imbalance.
According to government data, China became India's largest trading partner in 2025-26, with bilateral goods trade reaching $151.1 billion. However, this figure masks a much larger issue: Indian imports from China vastly exceeded its exports. While India's exports to China rose 36.62% to $19.47 billion in 2025-26, its imports increased by 16.03% to $131.63 billion, resulting in a widening trade deficit of $112.16 billion.
The trade deficit has expanded rapidly, increasing from $85.08 billion in 2023-24. China accounted for around 17% of India's merchandise imports in 2025-26, but only 4.4% of its exports. Over 66% of India's imports from China were concentrated in electronics, machinery, computers, and organic chemicals, which are crucial for India's manufacturing and energy-transition ambitions.
Despite China's growing influence in India's imports, Chinese investment in India remained limited, constituting only 0.32% of the country's total FDI equity inflows between 2000 and 2026. While India has sought to diversify its sources of industrial inputs and has pushed for greater Chinese market access, the scale of Chinese investment in India remains modest.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
