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India–China Trade Deficit 2025–26
March 21 , 2026
12 hrs 0 min
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- India’s trade deficit with China crossed $100 billion for the first time, reaching about $102 billion in FY 2025–26 (April–February).
- A trade deficit means imports are higher than exports in a given period of time.
- India imports high-value goods like electronics, machinery, telecom equipment and APIs (Active Pharmaceutical Ingredients) from China.
- India’s exports to China mainly include petroleum products, copper items and some electronics, which are lower in value.
- This creates economic risks like current account deficit and dependence on Chinese imports in key sectors.
- It also highlights issues like limited market access and imbalance in trade between the two countries.
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