China has overtaken the US to emerge as India’s largest trading partner in 2025–26, after the US held that position for four consecutive years through 2024–25. Bilateral trade with China reached USD 151.1 billion, according to government data cited by the Economic Times. Meanwhile, India’s trade deficit with Beijing widened to USD 112.16 billion during the period. Exports to China surged 36.66% to USD 19.47 billion in the last fiscal year, while imports rose 16% to USD 131.63 billion. The trade deficit swelled to an all-time high of USD 112.6 billion in 2025–26, compared with USD 99.2 billion in 2024–25. On the other hand, outbound shipments to the US grew marginally by 0.92% to USD 87.3 billion during the last fiscal year, while imports climbed 15.95% to USD 52.9 billion. The trade surplus declined to USD 34.4 billion in 2025–26 from USD 40.89 billion in 2024–25.
