Follow Us
India’s trade deficit with China crossed $ 100 billion in the first nine months of 2026, even as Indian exports grew by 40.7 per cent, sustaining their upward momentum amid a continued surge in Chinese imports. India’s trade deficit with Beijing widened to $ 105.93 billion between January and September 2026, a 20.7 per cent increase compared to the same period last year, according to PTI, citing data released on Wednesday by China’s General Administration of Customs.
Total bilateral trade rose by 25.4 per cent to $ 144.45 billion. The figures come months after Prime Minister Narendra Modi and Chinese President Xi Jinping discussed economic concerns on the sidelines of the BRICS Summit, focusing on New Delhi’s widening trade gap, market-access barriers, and supply-chain vulnerabilities.
ALSO READWholesale inflation jumps to 11.39% in Sept
Surge in both exports and imports
China’s exports to India reached $ 125.19 billion during the nine-month period, marking a 23.3 per cent year-on-year increase. Simultaneously, Indian exports to China surged by 40.7 per cent to $ 19.26 billion compared to the corresponding period last year.
The structural imbalance in trade remains prominent. Major Chinese exports to India consist primarily of value-added industrial inputs including electronics, heavy machinery, and organic chemicals catering to India’s expanding manufacturing ecosystem. Conversely, India’s export bundle to China remains largely concentrated in primary and resource-based commodities, such as mineral ores, refined fuels, seafood, and agricultural products.
Policy relaxations and recent trade context
Despite efforts to reduce reliance on Chinese supply chains, domestic demand for critical components has prompted targeted regulatory relaxations. In March this year, the Indian government eased procurement rules for state-run Bharat Heavy Electricals Ltd (BHEL), allowing it to source 21 critical power equipment components from China over five years, according to an Indian Express report.
The report added that in June, the Finance Ministry granted exemptions to four Chinese power equipment manufacturing companies operating factories in India TBEA Energy, Nanjing Electric India, New Northeast Electric India, and Taikai Electric (India)—enabling them to participate in government tenders for critical power projects. The exemptions bypassed standard public procurement rules that mandate entities from border-sharing nations to register with Indian authorities before bidding.
ALSO READIndia-US ties ‘safe,’ will only get stronger: Goyal
Historical context and structural imbalances
According to PTI, citing data from India’s Commerce Ministry, bilateral trade stood at $ 151.1 billion in the last year. During the 2025–26 fiscal year, India’s exports to China rose by 36.66 per cent to $ 19.47 billion, while imports grew by 16 per cent to $ 131.63 billion. This pushed the full-year trade deficit to a historic high of $ 112.6 billion, up from $ 99.2 billion in 2024–25.
For years, New Delhi has urged Beijing to open its domestic market to competitive Indian sectors, notably IT services, pharmaceuticals, and agricultural produce, to help narrow the gap, but progress remains limited.
TOPICSChinaexportsTradeThis article was first uploaded on October fourteen, twenty twenty-six, at eleven minutes past eight in the night. © IE Online Media Services (P) Ltd