China emerged as India's largest trading partner during the first half of the current financial year, with bilateral merchandise trade rising nearly 29 per cent to USD 91.76 billion in April-September 2026-27, according to data released by the Commerce Ministry.
The sharp increase pushed China ahead of the United States, which recorded bilateral trade of USD 83.14 billion during the six-month period.
India's trade with China stood at USD 71.24 billion during April-September 2025-26, indicating a substantial expansion in commercial exchanges between the two Asian economies.
However, the increase was accompanied by a widening trade deficit, as imports from China continued to significantly exceed Indian exports.
India's trade deficit with China rose to USD 68.93 billion during April-September 2026-27 from USD 54.06 billion in the corresponding period of the previous financial year.
The latest figures come amid efforts by New Delhi and Beijing to rebuild bilateral relations and strengthen economic engagement following years of strained ties.
๐๐บ๐ฝ๐ผ๐ฟ๐๐ ๐ณ๐ฟ๐ผ๐บ ๐๐ต๐ถ๐ป๐ฎ ๐ฟ๐ถ๐๐ฒ ๐ป๐ฒ๐ฎ๐ฟ๐น๐ ๐ฎ๐ด ๐ฝ๐ฒ๐ฟ ๐ฐ๐ฒ๐ป๐
India's imports from China increased 27.82 per cent to USD 80.34 billion during April-September 2026-27, compared with USD 62.86 billion in the corresponding period of the previous financial year.
Exports to China also registered strong growth, rising approximately 36 per cent to USD 11.41 billion from USD 8.38 billion a year earlier.
Despite the faster percentage growth in exports, the considerably larger value of imports resulted in a further widening of the trade imbalance.
The deficit increased by USD 14.87 billion over the six-month period, highlighting the substantial gap between India's purchases from China and its shipments to the neighbouring country.
The figures indicate that while Indian exporters expanded their presence in the Chinese market, the increase in imports continued to dominate bilateral trade flows.
China remains an important source of industrial inputs, machinery, electronics and components used by several Indian manufacturing sectors.
The widening deficit is likely to keep attention focused on the need to strengthen domestic manufacturing capabilities and expand India's export opportunities in the Chinese market.
๐จ๐ฆ ๐ฟ๐ฒ๐บ๐ฎ๐ถ๐ป๐ ๐๐ป๐ฑ๐ถ๐ฎ'๐ ๐๐ฒ๐ฐ๐ผ๐ป๐ฑ-๐น๐ฎ๐ฟ๐ด๐ฒ๐๐ ๐๐ฟ๐ฎ๐ฑ๐ถ๐ป๐ด ๐ฝ๐ฎ๐ฟ๐๐ป๐ฒ๐ฟ
The United States ranked second among India's trading partners during the first half of 2026-27, with bilateral merchandise trade increasing 16.5 per cent to USD 83.14 billion.
The corresponding figure stood at USD 71.39 billion during April-September 2025-26.
India's exports to the US rose 11.11 per cent to USD 50.81 billion from USD 45.73 billion in the same period last year.
Imports from the US grew at a faster pace, increasing 25.98 per cent to USD 32.32 billion from USD 25.66 billion.
Consequently, India's trade surplus with the United States narrowed to USD 18.49 billion from USD 20.07 billion in the first half of the previous financial year.
The data showed that although the US continued to be a major destination for Indian exports, the relatively faster growth in imports reduced India's merchandise trade surplus with the country.
The contrasting trade patterns with China and the US remain significant. India runs a substantial merchandise trade deficit with China, while maintaining a surplus with the United States.
๐๐ ๐ฝ๐ผ๐ฟ๐๐ ๐๐ผ ๐ฆ๐ถ๐ป๐ด๐ฎ๐ฝ๐ผ๐ฟ๐ฒ, ๐ง๐ฎ๐ป๐๐ฎ๐ป๐ถ๐ฎ ๐๐๐ฟ๐ด๐ฒ
The Commerce Ministry data also highlighted strong growth in India's exports to several other markets during the April-September period.
Shipments to Singapore jumped 103 per cent, while exports to Tanzania increased 122.5 per cent compared with the corresponding period of the previous financial year.
The sharp increases indicate expanding trade flows with these markets during the first half of the fiscal year.
However, India's exports declined to several important trading partners, including the United Arab Emirates, the Netherlands and Saudi Arabia.
The varying trends across markets reflect differences in demand and trade flows among India's major export destinations.
On the import side, India recorded a sharp increase in purchases from Oman and Brazil.
Imports from Oman surged 210.9 per cent, while those from Brazil rose 143.13 per cent during the six-month period.
In contrast, imports declined from the UAE, Saudi Arabia and Switzerland.
The figures underline the uneven movement of India's merchandise trade across different countries during the first half of the financial year.
๐๐ป๐ฑ๐ถ๐ฎ ๐๐ผ๐ฟ๐ธ๐ถ๐ป๐ด ๐๐ผ ๐ฟ๐ฒ๐ฏ๐๐ถ๐น๐ฑ ๐๐ถ๐ฒ๐ ๐๐ถ๐๐ต ๐๐ต๐ถ๐ป๐ฎ
The latest trade figures assume significance against the backdrop of India's efforts to improve relations with China.
Commerce and Industry Minister Piyush Goyal said on October 14 that India was working to rebuild its relationship with Beijing, although the future course of that process was yet to be determined.
His remarks indicated that the government viewed the restoration of bilateral engagement as an ongoing process.
The increase in trade during April-September suggests that commercial exchanges between the two countries have continued to expand alongside diplomatic efforts to improve relations.
However, the growing trade deficit remains a significant feature of the economic relationship.
๐๐ผ๐ป๐๐ถ๐ป๐๐ผ๐๐ ๐ฑ๐ถ๐ฎ๐น๐ผ๐ด๐๐ฒ ๐๐ผ ๐ถ๐บ๐ฝ๐ฟ๐ผ๐๐ฒ ๐๐ฟ๐ฎ๐ฑ๐ฒ ๐๐ถ๐ฒ๐
Commerce Secretary Rajesh Agarwal said officials from India and China remained in contact and were discussing issues concerning bilateral trade.
"There are discussions going on on both sides on trade issues also...constant discussions will help improve the trade ties between the two countries," he told reporters.
The Commerce Secretary's remarks come as India seeks to expand economic engagement while addressing trade-related concerns through dialogue.
The first-half figures show that India's combined trade with China and the United States exceeded USD 174 billion, underlining the importance of the two economies to India's international merchandise trade.
While China's return to the top position reflects a sharp increase in bilateral trade, the widening deficit highlights the continuing imbalance in commercial exchanges.
The coming months will be important in determining whether the growth in exports to China can be sustained and whether ongoing discussions between the two countries lead to improved market access for Indian businesses.