India, China start discussions on trade concerns

India and China have initiated talks to tackle significant trade disparities and supply chain challenges, with Commerce Secretary Rajesh Agrawal confirming additional meetings will follow, according to Reuters. The initial dialogue between Commerce and Industry Minister Piyush Goyal and his Chinese counterpart Wang Wentao aimed to grasp each nation's stance on trade matters, with the Commerce Secretary stating further discussions are expected.

Agrawal emphasized that both nations must articulate their concerns and perspectives on the issues raised by the other country to advance the conversations. Both sides have recently experienced improved bilateral relations, particularly in areas such as people-to-people exchanges and direct air links. However, the trade deficit between India and China remains a major concern, widening to USD 99.19 billion in 2025-26 compared to USD 85 billion the previous year.

The meeting on September 12 holds importance as China remains India's second-largest trading partner, with bilateral trade increasing by 7.9% to USD 127.7 billion in 2025-26. The Commerce Secretary expressed willingness for both countries to engage in constructive dialogue to resolve trade-related issues, including structural imbalances and supply chain concerns.