India’s trade deficit with China widened to $105.93 billion during January-September 2026, even as Indian exports to China rose 40.7%, as Chinese shipments to India continued to expand at a faster absolute scale.
New Delhi, October 14 — India’s trade deficit with China crossed the $100 billion mark in the first nine months of 2026, widening to $105.93 billion, according to data released by China’s General Administration of Customs.
The deficit was 20.7% higher than a year earlier, reflecting the continued gap between the value of Chinese goods entering India and Indian exports to China.
Total bilateral trade between the two countries increased 25.4% to $144.45 billion during January-September 2026. China’s exports to India reached $125.19 billion, registering a 23.3% increase.
Indian exports to China also recorded strong growth, rising 40.7% to $19.26 billion during the same period. Despite the faster percentage growth in Indian exports, the much larger scale of Chinese shipments meant the overall trade deficit continued to widen.
China’s exports to India are largely made up of electronics, machinery and chemicals, which are widely used by India’s manufacturing sector. Indian exports to China mainly consist of primary and resource-based products such as ores, fuels, seafood and agricultural goods.
The trade figures are compiled differently by the two countries. China reports trade on a January-December calendar-year basis, while India follows the April-March financial year.
According to India’s Commerce Ministry, bilateral trade between India and China had reached $151.1 billion last year. During the previous financial year, India’s exports to China rose 36.66% to $19.47 billion, while imports increased 16% to $131.63 billion.
India’s trade deficit with China had already touched a record $112.6 billion in 2025-26, up from $99.2 billion in 2024-25.
India has repeatedly sought greater access to the Chinese market for sectors where it has stronger export capability, including information technology, pharmaceuticals and agricultural products, but progress has remained limited.
The latest data shows that while Indian exports to China are growing at a healthy pace, the country remains heavily dependent on Chinese imports in key manufacturing-related categories, keeping the bilateral trade imbalance elevated.
