India faces $112.16 billion trade deficit with China in 2025-26
India is facing a huge $112.16 billion trade deficit with China: Basically, we buy way more from them than they buy from us.
In 2025-26, India exported just $19.47 billion to China but imported $131.63 billion worth of goods.
To shrink this gap by even 10%, India would have to boost exports by over half, which is no small feat.
Indian pharmaceuticals face China market barriers
Even though Indian exports to China jumped 36.6% in FY26, imports kept rising too, leaving a $67.1 billion deficit by mid-2026.
Pharmaceuticals could help close the gap: there is demand for Indian medicines, but regulatory approvals, price competition, procurement preferences, and other market-access barriers make it hard for these products to get through.
Despite repeated attempts since 2018, the deficit keeps growing, so new ideas are definitely needed.