India's Trade Deficit with China Almost Touches $100 Billion
New Delhi: India posted a trade deficit of $99.2 billion with China in the 2024-25 fiscal year, according to trade data, primarily due to a sharp rise in imports of electronic goods and consumer durables.
This is a few billion short of the psychologically significant $100-billion mark.
This report comes amidst high drama surrounding US president Donald Trump's announcement last week of a 90-day suspension on most tariff increases for key trade partners, including India, while significantly raising tariffs on Chinese products. The latter has raised concerns that Chinese companies might redirect their exports to alternative markets.
Data released by the Union commerce ministry on April 16 showed that exports to China fell by nearly 3% in March and declined by more than 14% over the full financial year. Imports from China, however, saw a sharp rise – surging 25% in March to $9.6 billion and increasing over 11% year-on-year to $113.4 billion.
India’s Foreign Trade for the month of March 2025. Photo: Union commerce ministry.
These figures display India's disproportionate reliance on Chinese imports, especially in sectors such as electronics, machinery, and chemicals. China is also India's leading supplier across all eight major industrial product categories.
“Rising US costs may prompt exporters from countries like China, Vietnam and Indonesia to divert goods to India, triggering import surge,” said a ministry official quoted by the New Indian Express.
India's top five import sources, the commerce ministry's data says, in terms of change in value, exhibiting growth in FY 2024-25 (April-March) vis a vis FY 2023-24 (April-March) are United Arab Emirates (32.06%), China (11.52%), Thailand (43.99%), USA (7.44%) and Russia (4.39%).
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