India’s trade deficit with China crossed $100 billion during the first nine months of 2026, despite strong growth in Indian exports. The deficit reached $105.93 billion between January and September, according to data released by China’s General Administration of Customs.

Bilateral trade increased 25.4% to $144.45 billion during this period. However, India’s imports from China continued to exceed its exports by a wide margin.

Indian Exports Rise 40.7%

India’s exports to China rose 40.7% to $19.26 billion between January and September. In comparison, China’s exports to India increased 23.3% to $125.19 billion.

China supplies electronics, machinery and chemicals that support India’s manufacturing sector. Meanwhile, India exports products such as ores, fuels, seafood and agricultural goods to the Chinese market.

Trade Imbalance Remains a Concern

India’s trade deficit with China has continued to widen. During the 2025–26 financial year, the deficit reached a record $112.6 billion, compared with $99.2 billion in 2024–25, according to India’s Commerce Ministry figures cited in the report.

India has repeatedly urged China to improve market access for Indian information technology, pharmaceutical and agricultural products. However, progress in these areas has remained limited.

Focus on Balanced Trade

The latest figures highlight the gap between India’s export growth and its rising dependence on Chinese imports. Improving access to the Chinese market could help Indian businesses expand their international sales.

At the same time, strengthening domestic manufacturing and diversifying supply chains remain important for reducing import dependence. A more balanced trade relationship could support India’s export ambitions and long-term economic growth.