India’s trade deficit with China surges to a record $99.2 billion in FY25

While the United States is still an export destination in India First, China is still the highest source of import in India. This represents an increase of 11.5 % more than 101.74 billion dollars of imports from China in the 24th year.

Meanwhile, India’s exports to China decreased by 14.5 % in the fiscal year 25 to 14.25 billion dollars from 16.67 billion dollars in the 24th year. This India’s trade deficit with China took to $ 99.2 billion in the last finance.

The data is important on two charges. First, India hopes to obtain a competitive advantage against China when it comes to exporting to the United States after the mutual definition tax. The United States has already imposed a 245 % revenge tariff on China, as the trade war between the two countries is intensifying even with US president Donald Trump’s position on a mutual tariff for other countries at a stop of 90 days.

Second, India is already concerned about throwing goods such as China, Vietnam and Indonesia due to mutual trade tensions and high costs of the United States. A committee was established between the center to monitor the increase in import by the representation of the Ministry of Commerce, the General Directorate of Foreign Trade, the Central Council for indirect taxes and customs and the Ministry of Promotion of Industry and Internal Trade.

Experts note that the amazing trade deficit with China is a cause of anxiety. “The record number reflects the deepest structural dependencies, not only commercial imbalances. Imports increased by 11.5 % driven by increasing demand for electronics, EV batteries, solar cells, and major industrial inputs – the prints dominated by China supply chains in India,” said Ajay Srivastava, the conference, the beginners in the field of global trade.

China is the main resource in India in all the categories of the eight major industrial products. He pointed out that PLI plans are working to fuel import growth due to their strong dependence on imported ingredients, adding that India needs to fix internal manufacturing gaps and invest in deep industrial capabilities.

In March 2025, India’s imports of China jumped by 25 % to 9.67 billion, while exports fell by 2.99 % to $ 1.51 billion.

Meanwhile, India’s exports to the United States in the fiscal year amounted to 256.51 billion dollars, compared to 77.52 billion dollars in the 24th year. Before the mutual definition tax from April 9, exports from India to the United States in March 2025 increased by 35 % to 10.14 billion dollars compared to 7.5 billion dollars in the 24th year.

The exports of the total goods of India during the fiscal year were approximately 25 flat, as they recorded a growth of 0.08 % to 437.42 billion dollars compared to 437.07 billion dollars in the fiscal year 24. The imports of goods during the fiscal year amounted to 25720.24 billion dollars compared to 678.21 billion dollars during the 24th year 24.