The bilateral trade in the six months rose to USD 91.72 billion, registering a 23.6 per cent increase, as trade volumes increased on both sides.
The trade deficit, a major concern for India, rose to USD 67.1 billion in the first half of the year as Chinese exports continued to surge.
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As per Chinese Customs data, China’s exports to India rose to USD 79.41 billion, while its imports from India surged by 37.2 per cent to USD 12.31 billion.
The major products of Chinese exports to India included electrical and electronic equipment, including telecom gear, smartphone/PCB parts, semiconductors, lithium-ion batteries, chargers, servers, cables, industrial machinery and computers, organic chemicals, plastics and polymers.
Indian exports to China included minerals and mineral ores, refined fuels and petroleum products, organic chemicals, electronics, agriculture and marine products, base metals and finished goods, gems, jewellery and precious stones, pharmaceuticals and related items.The fastest-growing Indian exports to China included Printed Circuit Boards (PCBs), OLED/Display Modules, Refined Petroleum, and light naphtha, as per Chinese customs data.
India’s bilateral trade with China last year totalled USD 151.1 billion, while Delhi’s trade deficit with Beijing widened to USD 112.16 billion during the period.
India’s exports to China rose 36.66 per cent to USD 19.47 billion during the last fiscal year, while imports increased 16 per cent to USD 131.63 billion. The trade deficit swelled to an all-time high of USD 112.6 billion in 2025-26 as against USD 99.2 billion in 2024-25.
India has been pressing China to open its IT, pharma and agricultural products, which are India’s strong areas, but with little success.
Early this month, Indian Ambassador Vikram Doraiswami said that China importing more Indian products, especially pharmaceuticals, coupled with Chinese investments in India, will be “good for the larger country-to-country relationship”.
“Obviously, we would like to be able to export more to China. This is nothing unreasonable about suggesting that, particularly in areas where we believe we have a competitive advantage like pharmaceuticals,” he said while addressing a panel discussion on “protectionism and global economic governance” at the World Peace Forum organised by China’s Tsinghua University here on July 4.
“For instance, we’re one of the world’s big exporters of pharmaceuticals to advanced markets…We think there is a balance of advantage for both countries, including value for China and, of course, value for the relationship,” he said in response to a question.
Answering a question on balanced policy between exports and investments, Doraiswami said Chinese investments are also “good for the larger country-to-country relationship”.
“On investments in that context, I think as the relationship is moving towards normalisation, the government of India has taken steps to re-establish opportunity for Chinese businesses to invest in the Indian market,” he said in apparent reference to the recent easing of restrictions by the Indian government on Chinese investments.
“Indeed, the policy environment has been specifically changed in the last few months to facilitate greater Chinese investment,” he said.
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Doraiswami also said that the conversation around improving structural issues around trade is also important.
“How do we find ways in which India and China can be connected with a widening basket of goods that both sides can provide each other, but also a sense that reasonable mechanisms to protect consumers can be applied in a way that enables India also to export more of the goods that it can export elsewhere in the world also to China,” he said.