India-China Trade: Key Figures Revealed Ahead of Xi and Modi’s Meeting at BRICS Summit in Delhi

The bilateral trade between India and China grew by 7.9% in the fiscal year 2025-26, reaching $127.7 billion, an increase from $118.39 billion in the previous year. This growth was primarily driven by a notable rise in India’s exports to China, which surged by 36.62% to $19.47 billion. However, the trade deficit worsened, expanding to $99.19 billion, up from $85 billion in 2024-25, indicative of India’s growing reliance on Chinese imports, particularly in critical industrial sectors.

For the common citizen, this trade dynamic implies significant implications for both prices and availability of goods. As India heavily imports industrial products from China, any shifts in trade policy or international relations could directly affect the cost of electronics, machinery, and chemicals essential for manufacturing. The widening trade deficit may lead to increased scrutiny from policymakers about India’s dependency on China, potentially impacting prices and supply chains for consumers.

Looking ahead, the Indian government and the Reserve Bank of India (RBI) may need to address this trade imbalance and seek diversified trade partnerships to minimize dependence on China. Future steps could include incentives for domestic production or alternative sourcing strategies. As India strengthens its position within BRICS, discussions at the summit could also influence trade agreements that aim to balance trade relationships with multiple countries, further shaping the economic landscape.

Source: The Hindu

(Expert Note: This report was independently prepared by the Wealthova Economy team.)