India’s trade deficit with China has crossed $100 billion in 2026, highlighting the growing imbalance in bilateral trade. According to data released by China’s General Administration of Customs, the deficit reached $105.93 billion between January and September.

During the same period, two-way trade increased 25.4% to $144.45 billion. India’s exports to China rose 40.7% to $19.26 billion, while imports grew 23.3% to $125.19 billion. Despite the strong export growth, rising imports continue to widen the trade gap.

India’s Exports Show Strong Growth

India’s major exports to China include seafood products, naphtha and printed circuit boards. These products indicate opportunities for Indian manufacturers to expand their presence in the Chinese market.

However, India’s exports remain significantly lower than its imports. The country continues to depend on China for intermediate goods, electronics and machinery used in manufacturing.

Market Access and Supply Chain Concerns

The widening trade deficit remains a concern for New Delhi. Indian officials have highlighted limited market access for Indian businesses and the continued reliance on Chinese finished goods.

Chinese export controls on products such as fertilisers and rare earth materials have also raised supply chain concerns. These restrictions could affect industries that depend on critical imported materials.

During recent talks, Indian Prime Minister Narendra Modi and Chinese President Xi Jinping discussed the structural trade imbalance, supply chain issues and the need for meaningful and predictable market access.

Focus on Balanced Trade

Although India’s exports to China have recorded strong growth, the overall trade imbalance remains substantial. Improving market access, strengthening domestic manufacturing and diversifying supply chains will be important steps towards reducing import dependence.

The latest figures underline the need for India to expand its export capabilities while building a more resilient and balanced trade relationship with China.