India’s Trade Deficit with China Crosses USD 100 Billion in First Nine Months of 2026

India’s trade deficit with China crossed USD 100 billion during the first nine months of 2026, despite a strong increase in Indian exports, as imports from China continued to grow significantly.

According to data released by China’s General Administration of Customs on Wednesday, India’s trade deficit with China widened to USD 105.93 billion between January and September 2026, registering a 20.7 per cent increase compared with the corresponding period last year.

Bilateral trade between the two countries increased by 25.4 per cent to USD 144.45 billion during the period. China’s exports to India rose 23.3 per cent to USD 125.19 billion, while Indian exports to China grew 40.7 per cent to USD 19.26 billion.

China’s exports to India are dominated by electronics, machinery and chemicals, which cater to the country’s manufacturing sector. In contrast, India’s exports to China largely comprise primary and resource-based products, including ores, fuels, seafood and agricultural goods.

According to India’s Commerce Ministry, bilateral trade between the two countries reached USD 151.1 billion in the 2025-26 financial year. India’s exports to China increased 36.66 per cent to USD 19.47 billion, while imports rose 16 per cent to USD 131.63 billion.

Consequently, India’s trade deficit with China reached an all-time high of USD 112.6 billion in 2025-26, compared with USD 99.2 billion in the previous financial year.

India has repeatedly urged China to improve market access for Indian information technology services, pharmaceuticals and agricultural products, areas in which India has significant capabilities. However, these efforts have achieved limited success.

The figures highlight the continuing imbalance in bilateral trade, with Chinese exports substantially exceeding Indian shipments despite the growth in India’s exports. China calculates its trade figures on a calendar-year basis, from January to December, while India follows a financial year running from April to March.