Trade between India and China: Trade between India and China is continuously increasing, but along with it, India’s trade deficit is also increasing rapidly. According to the latest data from China’s Customs Department, the total trade between the two countries increased to $91.72 billion in the first six months of 2026, which is 23.6% more than last year. However, during this period, India’s trade deficit with China increased to $67.1 billion, which has increased the concern of the government and industry.
According to the data, between January and June 2026, China’s exports to India increased by 21.8% to $79.41 billion. At the same time, India’s exports to China also increased and stood at $12.31 billion with an increase of 37.2%. Despite this, the trade deficit continued to increase due to the large gap between imports and exports.
Which things are traded the most?
Major products coming from China to India include electronic components, mobile and smartphone parts, semiconductors, lithium-ion batteries, chargers, computers, industrial machines, plastics and organic chemicals. India exports minerals, petroleum products, organic chemicals, electronics, agricultural and marine products, medicines, gems and jewelery to China. Good growth has been recorded in the exports of printed circuit boards (PCB), OLED display modules and refined petroleum in recent months.
Trade deficit becomes India’s biggest concern
Increasing trade is a good thing, but due to India’s imports being many times more than its exports, the trade deficit is continuously increasing. Even in the last financial year, India-China trade had reached $151.1 billion, while the trade deficit was a record more than $112 billion. Now the figures for the first six months of 2026 also indicate that this gap still remains a big challenge.
India wants China to open its market
India has long been demanding China to open markets for its pharma, IT and agricultural products. Indian Ambassador Vikram Doraiswami also recently said that if China increases the import of Indian medicines and other products and invests in the Indian market, it will further strengthen the trade relations between the two countries.
What will be the impact going forward?
Experts believe that if India wants to reduce trade deficit, it will have to increase exports of high-value products to China. Also, continuous work will have to be done towards strengthening domestic manufacturing and reducing dependence on imports. Changes in investment and trade policies between the two countries in the coming months can play an important role in improving this balance.
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