The Aporia
As of October 2026, India's trade deficit with China has crossed $100 billion, marking a significant increase from the previous year's record high of $116.12 billion in 2025. According to data released by China’s General Administration of Customs (GAC), two-way trade between January and September was up 25.4% to $144.45 billion, with India's imports from China rising by 23.3% to $125.19 billion. Indian exports to China grew robustly by 40.7% to $19.26 billion, but this growth was still not enough to narrow the trade deficit, which stood at $105.93 billion as of September 2026.
This widening imbalance has been a source of concern for New Delhi and featured prominently in discussions between Prime Minister Narendra Modi and Chinese President Xi Jinping during their meeting on the sidelines of the BRICS summit last month. Despite efforts to enhance trade relations, India's exports still remain significantly lower than imports, with major Indian exports to China including seafood products, naphtha, and printed circuit boards.
The widening imbalance has remained a source of concern for New Delhi, with the deficit featuring in last month’s talks between Prime Minister Narendra Modi and Chinese President Xi Jinping on the sidelines of the BRICS summit.
Indian officials say that while there is no expectation for trade to be perfectly balanced, the broader concern is the heavily lopsided trade relationship, a lack of market access for Indian firms, and the nature of India’s imports.
India is also concerned about Chinese export controls in an increasing number of sectors, from fertilisers to rare earths.
Krishnan, A. (2026, October 14). India’s trade deficit with China crosses $100 billion in 2026. The Hindu. https://www.thehindu.com/news/national/indias-trade-deficit-with-china-crosses-100-billion-in-2026/article71582529.ece
Krishnan, Ananth. “India’s trade deficit with China crosses $100 billion in 2026.” The Hindu, 14 Oct. 2026, https://www.thehindu.com/news/national/indias-trade-deficit-with-china-crosses-100-billion-in-2026/article71582529.ece.
Krishnan, Ananth. “India’s trade deficit with China crosses $100 billion in 2026.” The Hindu, October 14, 2026. https://www.thehindu.com/news/national/indias-trade-deficit-with-china-crosses-100-billion-in-2026/article71582529.ece.
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