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China Surpasses US As India's Largest Trading Partner In FY26; Trade Gap Swells To $112.16 Billion

India's exports to China rose 36.66% to $19.47 billion during the last fiscal year, while imports increased 16% to $131.63 billion.

China Surpasses US As India's Largest Trading Partner In FY26; Trade Gap Swells To $112.16 Billion
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  • China became India's largest trading partner in 2025-26 with $151.1 billion in trade
  • India's trade deficit with China increased to $112.16 billion in 2025-26 from $99.2 billion
  • India's exports to China rose 36.66% to $19.47 billion in 2025-26 while imports grew 16%
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China has overtaken the US to emerge as India's largest trading partner in 2025-26, with bilateral trade reaching $151.1 billion, while the country's trade deficit with Beijing widened to $112.16 billion during the period, government data showed.

The US was India's largest trading partner for four consecutive years till 2024-25.

India's exports to China rose 36.66% to $19.47 billion during the last fiscal year, while imports increased 16% to $131.63 billion. The trade deficit swelled to an all-time high of $112.6 billion in 2025-26 as against $99.2 billion in 2024-25.

On the other hand, the country's outbound shipments to the US grew marginally 0.92% to $87.3 billion during the last fiscal year, while imports increased 15.95% to $52.9 billion. The trade surplus declined to $34.4 billion in 2025-26 from $40.89 billion in 2024-25.

According to commerce ministry data, China was India's top trading partner from 2013-14 till 2017-18 and also in 2020-21. Before China, the UAE was the country's largest trading partner. The US has been the largest partner since 2021-22.

The major trading partners with which India recorded negative exports growth in 2025-26 include the Netherlands, the UK, Singapore, Bangladesh, Saudi Arabia, Australia, France, South Africa, and Malaysia.

ALSO READ: India-UK Trade Agreement May Come Into Force Next Month: Commerce Secy

However, exports to the UAE, Germany, Hong Kong, Italy, Nepal, Brazil, Spain, Belgium, and Vietnam registered positive growth last fiscal year.

The major trading partners with which India recorded negative imports growth in 2025-26 include Russia, Iraq, Indonesia, Australia, Qatar, and Taiwan.

However, imports from the UAE, Saudi Arabia, Hong Kong, Switzerland, Singapore, Japan, Korea, Germany, Thailand, and Malaysia registered positive growth in the last fiscal year.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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