China Surpasses United States as India's Largest Trading Partner

The Government of India reported that China surpassed the United States to become its largest trading partner during the 2025-26 fiscal year. Bilateral trade between the two nations reached $151.1 billion, marking a shift from the previous four years when the United States held the top position.

While Indian exports to China grew 36.66% to $19.47 billion, imports from China increased 16% to $131.63 billion. This imbalance resulted in a record high trade deficit for India of $112.6 billion. Simultaneously, the trade surplus the United States maintained with India declined to $34.4 billion, down from $40.89 billion in the prior year.

Commerce ministry data indicates a fluctuating relationship in trade leadership. China previously occupied the top spot between 2013-14 and 2017-18, and again in 2020-21, before the United States took the lead in 2021-22.