India’s Trade Deficit With China Crosses $100 Billion in 2026
What Happened
According to China’s General Administration of Customs (GAC) data released on October 14, 2026, India’s trade deficit with China reached $105.93 billion in the first nine months of the year. Bilateral trade rose 25.4% year‑on‑year to $144.45 billion, with India’s imports from China at $125.19 billion (up 23.3%) and exports at $19.26 billion (up 40.7%). Despite export growth, the deficit is set to surpass last year’s record of $116.12 billion. The imbalance was discussed between Prime Minister Narendra Modi and President Xi Jinping during the BRICS summit in September 2026, where India raised concerns over market access restrictions and reliance on Chinese finished goods.
Key Takeaways
The widening deficit highlights India’s structural dependence on Chinese imports, particularly in electronics and machinery. While exports show promise, lack of access for Indian IT, pharma, and agriculture in China continues to fuel the imbalance.