Union Finance Minister Nirmala Sitharaman has identified China’s non-tariff barriers as a major obstacle to Indian exports. She said limited market access for Indian products has contributed to the widening trade deficit between the two countries.

Speaking at an Atlantic Council event on the sidelines of the IMF-World Bank annual meetings in Bangkok, Sitharaman highlighted challenges faced by Indian exporters. She said India had repeatedly sought better access to the Chinese market for products such as generic medicines, agricultural goods and bovine meat.

India’s trade deficit with China more than doubled, rising from $52.7 billion in FY16 to $112 billion in FY26. Sitharaman said India had continued to pursue negotiations rather than introduce retaliatory trade restrictions.

China’s foreign ministry responded that Beijing was willing to work with New Delhi to address bilateral trade concerns and support stable economic relations.

The finance minister also called for a review of India’s free trade agreement with the Association of Southeast Asian Nations (ASEAN). She said the agreement should be restructured to address trade imbalances and protect domestic manufacturers. India’s trade deficit with ASEAN crossed $50 billion in FY26.

Sitharaman defended India’s decision to stay out of the Regional Comprehensive Economic Partnership (RCEP), stating that the government had not expected sufficient benefits from joining the framework.

Despite global trade challenges, Indian exporters have continued to explore alternative markets. Sitharaman reported that exports of goods and services grew 23% in September, highlighting exporters’ efforts to expand their international reach.

India is also pursuing bilateral trade agreements with several partners, including the European Union, New Zealand, Australia and the United Arab Emirates, while negotiations with Canada and the United States continue.

The government aims to strengthen India’s export competitiveness through improved market access and trade partnerships. A review of existing agreements could also help address concerns about import competition and create more balanced opportunities for Indian manufacturers and exporters.