China Surpasses US as India's Top Trading Partner Amid Changing Trade Dynamics

China Emerges as India's Largest Trading Partner

In recent years, both China and the United States have been significant trading partners for India, a nation heavily reliant on imports. However, following the imposition of tariffs by the US, shifts in trade patterns have become evident. According to government statistics, during the Financial Year 2025-26, China has surpassed the US to become India's largest trading partner, with bilateral trade reaching an impressive $151.1 billion. This shift has also led to an increase in India's trade deficit with China, which expanded to $112.16 billion during the same period.

Data reveals that India's exports to China surged by 36.66% to $19.47 billion in the last fiscal year, while imports from China rose by 16% to $131.63 billion. Consequently, the trade deficit with China hit a record high of $112.6 billion in 2025-26, compared to $99.2 billion in 2024-25. In contrast, India's imports from the US grew by 15.95% to $52.9 billion, while exports to the US saw a modest increase of 0.92%, totaling $87.3 billion.