Trade gap with China widens to $99.2 bn

PTI New Delhi

The US remained India's largest trading partner for the fourth consecutive year in 2024-25 with bilateral trade valued at USD 131.84 billion, while the country's trade deficit with China widened to USD 99.2 billion during the same period, government data showed.

In the last fiscal, India's exports to China contracted 14.5 per cent to USD 14.25 billion as against USD 16.66 billion in 2023-24. The imports, however, rose by 11.52 per cent in 2024-25 to USD 113.45 billion against USD 101.73 billion in 2023-24. The trade deficit with China has widened by about 17 per cent to USD 99.2 billion in the last fiscal from USD 85.07 billion in 2023-24.

China continued to be the second largest trading partner of India with USD 127.7 billion two-way commerce in 2024-25 as compared to USD 118.4 billion in 2023-24. According to the 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.

Commenting on the data, think tank GTRI (Global Trade Research Initiative) said India's trade deficit with China hit a "staggering" USD 99.2 billion in FY25, which is a "record gap" that reflects deeper structural dependencies, not just trade imbalances.