China Overtakes US As India’s Largest Trading Partner In FY26; Deficit Swells To $112.6Bn

Last Updated:April 15, 2026, 9:43 PM IST

The US was India’s largest trading partner for four consecutive years till 2024-25.

Higher imports from China pushed total trade past $151 billion, with the deficit expanding sharply despite a rise in exports. (IMAGE: REUTERS)

China has overtaken the US to emerge as India’s largest trading partner in 2025-26, with bilateral trade reaching USD 151.1 billion, while the country’s trade deficit with Beijing widened to USD 112.16 billion during the period, government data showed.

The US was India’s largest trading partner for four consecutive years till 2024-25.

India’s exports to China rose 36.66 per cent to USD 19.47 billion during the last fiscal year, while imports increased 16 per cent to USD 131.63 billion. The trade deficit swelled to an all-time high of USD 112.6 billion in 2025-26 as against USD 99.2 billion in 2024-25.

On the other hand, the country’s outbound shipments to the US grew marginally 0.92 per cent to USD 87.3 billion during the last fiscal year, while imports increased 15.95 per cent to USD 52.9 billion. The trade surplus declined to USD 34.4 billion in 2025-26 from USD 40.89 billion in 2024-25.

According to commerce ministry data, China was India’s top trading partner from 2013-14 till 2017-18 and also in 2020-21. Before China, the UAE was the country’s largest trading partner. The US has been the largest partner since 2021-22.

The major trading partners with which India recorded negative exports growth in 2025-26 include the Netherlands, the UK, Singapore, Bangladesh, Saudi Arabia, Australia, France, South Africa, and Malaysia.

However, exports to the UAE, Germany, Hong Kong, Italy, Nepal, Brazil, Spain, Belgium, and Vietnam registered positive growth last fiscal year.

The major trading partners with which India recorded negative imports growth in 2025-26 include Russia, Iraq, Indonesia, Australia, Qatar, and Taiwan.

However, imports from the UAE, Saudi Arabia, Hong Kong, Switzerland, Singapore, Japan, Korea, Germany, Thailand, and Malaysia registered positive growth in the last fiscal year.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)

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