New Delhi: China has emerged as India’s largest trading partner in the first three months of 2026, overtaking the United States and maintaining its lead for the 11th consecutive month, according to official data and statements from Beijing.
Chinese Ambassador to India Xu Feihong welcomed the development, noting that bilateral trade between the two countries continues to gain momentum. He described the trend as a sign of strengthening economic ties between the neighbouring economies.
Data for the April–February 2026 period shows India-China trade at approximately USD 137 billion, significantly higher than the USD 127.8 billion recorded with the United States, widening the gap to nearly USD 10 billion.
The figures underline the deep economic interdependence between the two Asian giants. China remains a dominant supplier in critical sectors such as electronics, machinery, and active pharmaceutical ingredients, where India continues to rely heavily on imports.
In comparison, India-US trade remains strong but has not matched the pace of growth seen in China-linked commerce. US data indicates that total goods trade between India and the United States stood at around USD 149.4 billion in 2025, with American exports to India rising to USD 45.6 billion and imports from India reaching USD 103.8 billion.
However, the trade imbalance has widened significantly, with the US goods trade deficit with India touching USD 58.2 billion in 2025, reflecting a sharp year-on-year increase.
Experts point out that while India’s exports to the United States are expanding rapidly, especially in manufacturing and services-linked goods, China’s entrenched role in India’s supply chains continues to give it a structural advantage.
At the same time, India’s trade with China has resulted in its largest bilateral trade deficit, which has been steadily increasing and reached USD 99.21 billion in 2024–25.
The latest figures are expected to revive policy debates in New Delhi over reducing dependence on Chinese imports, particularly in strategic sectors, even as initiatives like “Make in India” aim to boost domestic manufacturing and diversify supply chains.
