India's imports from China hit record high in H1 2026
What's the story
India's imports from China surged by 21.8% in the first half of 2026, touching an all-time high of $79.41 billion, data from China's General Administration of Customs showed. The bilateral trade between the two countries also witnessed a significant jump, rising by 23.6% to reach $91.72 billion during this period. This growth trajectory is likely to surpass last year's record trade figure of $155.62 billion between India and China.
Export growth
Trade deficit with China stood at $67 billion in H1
The trade deficit with China stood at $67.1 billion in the first half of this year, on course to surpass last year's record figure of $116.12 billion.
However, India's exports to China have also seen a major jump, rising by 37.2% to $12.31 billion during this period.
This shows that while imports are increasing significantly, exports are also keeping pace with the growing trade relationship between the two countries.
Trade imbalance
India's overall trade deficit widens
India's overall trade deficit also widened by a whopping 430% year-on-year to $15.3 billion in June 2026.
This was mainly due to a sharp rise in merchandise imports and a spike in the value of crude oil, electronics, and gold imports.
Trade concerns
Concerns over nature of goods in trade deficit with China
Indian officials are more worried about the nature of goods in the trade deficit with China, rather than its size.
The country imports a lot of finished electronics and other equipment from China, but also intermediates needed for Indian manufacturing and exports.
A major concern is that India's exports to China have mostly been low value-added products like organic chemicals, ores, and seafood.