India’s imports from China have risen sharply to about $80 billion, according to business teaser material and reported trade data. The broader concern is not only the size of the deficit, but also the composition of trade between India and China.
Trade data show India’s imports from China increased by about one-fifth in the first half of 2026, taking bilateral trade to a record level for that period. The India-China trade deficit is likely to exceed the previous year’s record.
Background and earlier position
India’s trade relationship with China has long been characterised by a high-value import basket and a narrower export basket. India imports finished electronics, equipment, and intermediate inputs used in domestic manufacturing and export production.
India’s exports to China have historically been concentrated in lower-value-added categories such as certain chemicals, ores, and seafood. That pattern makes the deficit harder to correct through volume growth alone.
What changed now
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