China Steals the Spotlight: India's Top Trading Partner in 2025-26

In 2025-26, China has become India's largest trading partner, surpassing the US, with a bilateral trade of USD 151.1 billion. The widened trade deficit with China highlights concerns. India's exports to the US experienced minimal growth, while imports surged. Trade dynamics show shifting global partnerships.

In a remarkable shift in global trade dynamics, China has become India's largest trading partner in 2025-26, overtaking the United States with bilateral trade soaring to USD 151.1 billion. This marks a significant change from the previous four years when the US held the top spot.

According to data from India's commerce ministry, the trade deficit with China expanded significantly to USD 112.16 billion during the same period, raising concerns over the balance of trade between the two nations. India's exports to China rose by an impressive 36.66 percent, yet imports also grew, increasing by 16 percent.

Meanwhile, India's trade relationship with the United States showed modest shifts, with exports rising marginally by 0.92 percent, and imports increasing by 15.95 percent. The trade surplus with the US consequently decreased to USD 34.4 billion in 2025-26 from USD 40.89 billion in the previous fiscal year.

(With inputs from agencies.)