India’s trade deficit with China crossed $100 billion in the first nine months of the year, even as Indian exports grew by 40.7%, as per the data released by China’s General Administration of Customs on Wednesday.

India’s trade deficit with China widened to $105.93 billion between January and September, making a 20.7% increase compared with the corresponding period last year.

The figures highlight the persistent imbalance in bilateral trade, with Chinese exports to India continuing to substantially exceed Indian exports to China.

Total bilateral trade increased by 25.4% to $144.45 billion during the nine-month period.

China’s Exports to India Outpace Indian Shipments

In first nine months of this year, China's export to India increased by 23.3% compared to same time period last year, totaling goods worth $125.19 exported to India.

In comparison, Indian exports to China rose by 40.7% to $19.26 billion. Although India recorded faster growth in Indian exports, but the difference between the two countries export values continues to drive India’s trade deficit.

• Goods China exports to India: electronics, machinery and chemicals for manufacturing

• Goods India exports to China: mix of primary and resource-based products, including ores, fuels, seafood and agricultural goods.

India’s Record Trade Deficit With China

As per the Ministry of Commerce and Industry data

• Bilateral trade between India and China: $151.1 billion; FY 2025–26.

• India’s exports to China: $19.47 billion increased by 36.66%; FY 2025-26

• Imports from China: $131.63 billion increased by 16%; FY 2025-26

• India’s trade deficit with China: $112.6 billion in FY 2025–26, ($99.2 billion in 2024–25).

The figures highlights a continuing challenge for India: export growth has accelerated, but the value of imports from China remains significantly higher.

Below is the chart prepared by Statista of India's growing trade deficit with India from FY 2014-15 till FY 2024-25.

Key difference to measure trade deficit in India and China:

China reports trade figures on a calendar-year basis, from January to December, while India’s official trade statistics follow the financial year, from April to March.

The nine-month calendar-year figures and full-year Indian financial-year figures therefore cover different reporting periods.

India Seeks Greater Access to China’s Market

India has repeatedly called for better access for information technology, pharmaceuticals and agricultural products, in the Chinese market but Indian exporters continue to face challenges in expanding their presence in these sectors in China

Reducing the imbalance will depend not only on increasing Indian exports but also on diversifying supply chains, improving the competitiveness of domestic manufacturing and securing better market access for Indian goods and services.