India’s exports to China posted a $5.5 billion increase compared to last year bucking the declining trend even as the trade deficit hit a record $116.12 billion, as per the annual trade data released by Chinese customs here on Wednesday.
Bilateral trade, too, surged to an all-time high to $155.62 billion in 2025, according to the data. Indian exports to China that over the years struggled to make headway climbed to $19.75 billion between January and December last year, posting a 9.7 per cent increase, amounting to $5.5 billion, according to the data.
At the same time, Chinese exports to India increased 12.8 per cent to $135.87 billion last year. While trade is picking up from both countries, the total bilateral trade surged to a record high of $155.62 billion in 2025, the year in which both countries faced US President Donald Trump’s tariff hikes. The trade deficit — a constant problem in India-China trade — touched a record high of $116.12 billion, crossing the $100-billion for the second time since 2023.
In 2024, the trade deficit was $99.21 billion with China’s exports totalling to $113.45 billion, and India’s outbound shipments to China stagnating at $14.25 billion. China’s annual trade data covers from January to December while India releases its figures from March to April. Observers said the $5.5 billion increase in Indian exports, though modest, is significant, pointing to a structural shift with items such as oil meals, marine products, telecom instruments and spices, making headway into the tough Chinese market, which is struggling to expand its domestic consumption.
Also, India over the years has been demanding China to open its IT, pharma, and agricultural produce, which are India’s strong areas. China’s overall global trade continues to grow, defying trade tensions with the US. Customs data showed that the surplus surged to a record of almost $1.2 trillion in 2025 an increase of 20 per cent compared to 2024, with exports at $3.77 trillion and imports at $2.58 trillion.
